Gold is at a 3-month peak due to the conflict in the Middle East

Gold prices rose to their highest levels in three months on Friday and were on track for a second straight weekly gain on rising demand boosted by conflict in the Middle East and expectations that interest rate hikes by the Federal Reserve are nearing an end.

By 0332 GMT, gold in spot transactions rose 0.2 percent to $1,978.17 per ounce, after reaching its highest levels since July 20. US gold futures increased 0.5 percent to $1,990.50.

The Israeli Defense Minister told forces gathered on the Gaza border on Thursday that they would soon see the Palestinian enclave “from the inside,” a sign that an expected ground invasion to eliminate Hamas may be imminent.

As for other precious metals, silver fell in spot transactions by 0.1 percent to $23.01 per ounce, but it is heading for its second weekly rise.

Platinum rose 0.1 percent to $891.88, and palladium increased 0.3 percent to $1,116.82.