Gold maintains its luster in light of the Middle East conflict

Gold prices hovered near the highest level in two and a half months on Thursday, as escalating unrest in the Middle East boosted demand for a safe investment haven. At the same time, investors awaited a speech by Federal Reserve Chairman Jerome Powell scheduled for later on Thursday.

By 0318 GMT, gold settled in spot transactions at $1,947.45 per ounce after recording on Tuesday its highest level since August 1. US gold futures fell 0.4 percent to $1,959.70.

Gold, which is usually a safe investment haven in times of political and financial uncertainty, has risen more than $130, or nearly eight percent, since falling to a seven-month low on October 6 (EGX: OCDI).

Investors are awaiting Powell’s speech today for more indications about the interest rate path in the coming period.

High interest rates increase the opportunity cost of gold, which does not generate returns and is priced in dollars.

As for other precious metals, silver settled in spot transactions at $22.86 per ounce, platinum fell 0.5 percent to $881.24, and palladium fell 0.3 percent to $1,125.35.