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Gold prices experienced a significant uptick on Monday, surpassing the $2,050 level, driven by increased demand for the safe-haven asset amid escalating tensions in the Middle East. Additionally, renewed speculation about an early interest rate cut by the Federal Reserve contributed to the attractiveness of gold.
As of 06:39 GMT, spot gold in instant transactions rose by 0.4 percent to $2,056.20 per ounce, marking its most substantial daily gain since December 12. Meanwhile, US gold futures increased by 0.4 percent to $2,060.10.
Traders are increasingly betting on a 166 basis point cut in interest rates throughout the year, surpassing the previous estimate of 150 basis points on Friday morning. The London Stock Exchange Group’s probability of changing interest rates application indicates a 79 percent expectation among traders that the Federal Reserve will commence interest rate cuts in March.
According to Reuters technical analyst Wang Tao, spot gold prices may break resistance at $2,060 per ounce, potentially rising to the $2,071-$2,079 range.
In tandem with gold’s surge, other precious metals also experienced positive movements. Silver rose by 0.4 percent to $23.25 per ounce, platinum increased by 0.7 percent to $911.85, and palladium gained 1 percent, reaching $985.46.
