Gold prices are on the rise, while silver is slightly up in early U.S. trading on Thursday. This is attributed to the increase in safe-haven demand amid rising geopolitical tensions in the Middle East. According to reports, Pakistan conducted retaliatory airstrikes within Iran, causing casualties. This comes after Iran’s attack on Pakistani soil earlier in the week. These actions have escalated tensions in the region, with Iran commencing air defense drills near Pakistan and the U.S. launching airstrikes on Iranian-backed Houthi rebel targets in Yemen.
The Asian and European stock markets were mixed to firmer overnight. Similarly, U.S. stock index futures are set to open higher, indicating overall positive investor sentiment.
The U.S. dollar index has seen a slight dip after hitting a four-week high on Wednesday. Meanwhile, Nymex crude oil prices remain steady around $72.50 a barrel. Additionally, the yield on the benchmark U.S. Treasury 10-year note is currently at approximately 4.09%.
In the U.S., economic data scheduled to be released includes the weekly jobless claims report, the Philadelphia Fed business survey, new residential construction, and the weekly DOE liquid energy stocks report.
From a technical analysis perspective, gold futures remain in an overall near-term uptrend, but the strength of the bullish trend has diminished. On the other hand, silver prices continue a five-week-old downtrend on the daily bar chart.
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