Gold stable at settlement with Middle East turmoil, economic data in focus

Gold prices remained flat at settlement today, Oct. 17, amid sharpened focus on the escalating Middle East conflict, with US bond yields gaining ground as investors assessed the path of US monetary policy.

Bullion for December delivery held steady at $1,935.70 per ounce at the end of today's session.

The precious metal rallied after the US dollar index, which measures the performance of the US currency against a basket of six major currencies, erased gains and settled at 106.19 points at 08:29 pm Makkah time, after touching 106.53 points in early trading.

US bond yields strengthened today with the two-year bond yields hitting their highest levels since 2006, as markets evaluated the possibility of further monetary tightening.

All eyes are on the intensifying geopolitical tensions in the Middle East and its potential ripple effect on US inflation after data indicated that America’s retail sales rose at a higher-than-expected pace in September.