Gold scores highest close since July-end

Gold prices rallied today, Oct. 25, as increased safe-haven bids intact on Middle East tensions, with markets awaiting data from major global economies.

In the first three quarters of 2023, China’s gold consumption surged 7.3% from a year earlier on soaring demand amid economic recovery, Reuters reported, citing data from the China Gold Association.

However, the yellow metal's gains were limited by stronger US bond yields after the release of data reflecting an acceleration in new home sales in September, amid market forecasts of further monetary policy tightening until 2024.

All eyes are on the release of the Q3 2023 preliminary reading of the US GDP tomorrow, Oct. 26. This is besides the interest rate decision issued at the latest European Central Bank (ECB) policy meeting.

At settlement today, bullion for December delivery gained 0.45%, or $8.80, to $1,994.90 per ounce, after falling to $1,973.60 an ounce in early trading, scoring the highest close since the July 31 session.

Similarly, the US dollar index, which measures the performance of the US currency against a basket of six major currencies, climbed by 0.20% to 106.49 points at 08:29 pm Makkah time.