Gold prices continued their ascent, buoyed by bargain-hunting purchases that overshadowed market pressures stemming from heightened Middle East tensions.
The precious metal climbed as much as 1.6% during the session, surpassing $4,140 per ounce, building on a gain of nearly 2% from the previous trading day. Silver prices also advanced toward the $60 per ounce level. This movement occurs against a backdrop of persistently high US Treasury yields and no immediate signs of de-escalation in the renewed conflict between the United States and Iran.
This momentum has already driven significant capital into exchange-traded funds. Data indicates that total holdings in gold ETFs increased by approximately 7.4 tonnes on Tuesday, marking the largest single-day net inflow in over a month.
Concurrently, the latest weekly CFTC futures and options data shows that money managers increased their net-long positions in gold by 4,293 contracts, bringing the total to 119,147 contracts.
"This could represent a breakout following a notable reduction in volatility over the past few days," an analyst from Global X ETFs commented. "It appears buyers have successfully defended the $4,000 level, and selling pressure has subsided." The analyst noted that volatility has dropped significantly to its lowest point since early June.
Spot gold was up 1% at $4,118.4 per ounce. Silver also gained nearly 1%, trading at $59.4 per ounce. Platinum and palladium prices also moved higher. The Bloomberg Dollar Spot Index was largely unchanged after a 0.2% rise in the prior session.
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