Gold subdued as yields rise, spotlight shifts to US economic data

SINGAPORE, Oct 23 (Reuters): Gold prices eased on Monday as US 10-year Treasury yields advanced higher, while investors kept a tab on growing unrest in the Middle East and awaited US economic data.
Spot gold was down 0.2 per cent at $1,976.29 per ounce by 9:31 a.m. ET (1331 GMT). US gold futures eased 0.3 per cent to $1,987.90.
The yield on the benchmark 10-year US Treasury note hit 5.0 per cent, decreasing the appeal of non-yielding bullion.
"Higher yields continue to be a drag on gold prices, but we believe geopolitical tensions and the uncertainty in the Middle East will continue to drive prices higher," said David Meger, director of metals trading at High Ridge Futures.
Bullion prices hit their highest since mid-May on Friday and surged about 9 per cent in the past two weeks as investors fluttered into the safety of gold on fears that the Israel-Hamas war could escalate into a wider Middle East conflict.
Focus is also on the US PCE price index - the Federal Reserve's favoured inflation gauge - US GDP figures for the third quarter, the European Central Bank's rate decision and global flash PMIs for economic cues.