Gold retreats from the highest level in a month as investors’ fears of war escalate

Gold prices fell on Monday after reaching the highest level in nearly a month, with escalating fears of the conflict between Israel and the Islamic Resistance Movement (Hamas), which pushed the precious metal to rise by more than three percent in the previous session.

By 0102 GMT, gold in spot transactions fell 0.5 percent to $1,921.69 per ounce. US gold futures fell 0.4 percent to $1,934.40 an ounce.

Gold, which is seen as a safe investment in times of turmoil, hit its highest level since September 20 at $1,934.82 an ounce earlier in the session after rising 3.4 percent on Friday, its highest daily increase in seven months.

US President Joe Biden on Sunday expressed his belief that Hamas must be eliminated, but there must be a path towards a Palestinian state.

The war between Israel and Hamas has brought into sharper focus the growing geopolitical risks for financial markets, as investors wait to see whether the conflict might attract other countries with the potential to push oil prices higher and deal a new blow to the global economy.

Consumer sentiment deteriorated in the United States in October, as households expected inflation to rise over the next year, but the strength of the labor market is likely to continue to support consumer spending.

As for other precious metals, silver decreased in spot transactions by 0.4 percent to $22.62 per ounce. Platinum fell 0.2 percent to $879.19 an ounce. Palladium settled at $1,147.55 per ounce.