Precious Metals Preview: Gold loses safe haven appeal amid easing geopolitical tensions

Gold is losing sheen as a safe haven commodity amid easing geopolitical tensions in the Middle East. A ceasefire between Israel and the Lebanese armed group Hezbollah was reportedly upheld on Wednesday, following a deal mediated by the United States (US) and France. Meanwhile, data from US showed solid growth in consumer spending for October, but highlighted stagnation in progress toward lowering inflation, that could reduce demand for the yellow metal. US Personal Consumption Expenditures (PCE) Price Index increased by 2.3% year-over-year in October, up from 2.1% in September. Meanwhile, the core PCE Price Index, which excludes volatile food and energy prices, rose by 2.8%, slightly higher than the 2.7% recorded the previous month. Currently, the counter is quoting at $2654.20 an ounce, down 0.40% on the day.

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