The strikes in Saudi Arabia are likely to raise regional tensions even further. Stock futures rose 0.05%, but sentiment remained fragile. On Wall Street, the S 500 ended 0.31% lower.Spot gold traded a shade higher in Asia at $1,498.60 an ounce following a 0.7% increase on Monday.The yield on benchmark 10 year Treasury notes fell slightly to 1.8327%The dollar was little changed at 108.17 yen.
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On Friday alone, gold prices shot up by more than two per cent.Trade tensions are why CIBC is bullish on the precious metal, the bank said in a research note Monday. Trump actions on Friday also contributed to UBS Group analysts Giovanni Staunovo and Wayne Gordon on Monday boosting their 12 month outlook on gold to US$1,650 from US$1,500. The world situation is deteriorating, there is the potential for gold to increase further than our forecasts.
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