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On Monday, gold prices rallied, edging closer to the highest levels seen in a week, buoyed by a slight retreat in the US dollar and escalating tensions in the Middle East, fostering demand for safe-haven assets.
As of 0335 GMT, spot gold surged by 0.4 percent to $2,021.09 per ounce, marking its loftiest point since February 13. Simultaneously, US gold futures climbed by 0.4 percent to $2,032.40 per ounce.
The backdrop of heightened geopolitical tensions was underscored by reports of a ship registered in the United Kingdom coming under attack in the Bab al-Mandab Strait on Sunday. Furthermore, the British Maritime Trade Operations Authority revealed that the crew of one of the vessels had evacuated off the coast of Yemen following an explosion, intensifying concerns over regional stability.
Concurrently, the US dollar index experienced a marginal decline of 0.1 percent, rendering the precious metal, priced in dollars, more appealing to investors compared to holders of alternative currencies.
In contrast, platinum in spot transactions witnessed a 0.4 percent decrease, settling at $902.37 per ounce, while palladium surged by 0.9 percent to $958.66 per ounce. Silver, however, experienced a 1.2 percent decline, reaching $23.12 per ounce.
Conclusion
As geopolitical uncertainties continue to reverberate across global markets, gold’s allure as a safe-haven asset remains robust, with investors closely monitoring developments in the Middle East and their potential implications for broader market dynamics. Amidst this backdrop, precious metals markets are poised to remain sensitive to geopolitical shifts, underlining the importance of staying attuned to evolving geopolitical narratives and their impact on asset prices.
