Gold rises as concerns mount over conflict in the Middle East

Gold prices experienced an upturn on Monday, driven by heightened geopolitical tensions in the Middle East, which prompted increased demand for the precious metal as a safe-haven asset. Trading activity remained subdued as investors awaited statements from the Federal Reserve Chairman for clarification on interest rate matters.

In spot transactions, gold rose by 0.4 percent, reaching $2,025.99 per ounce by 0403 GMT. Concurrently, US gold futures also saw a 0.4 percent increase, reaching $2,025.20.

Geopolitical concerns were exacerbated after a drone attack on American forces stationed in northeastern Jordan resulted in the death of three US soldiers.

With the upcoming Federal Reserve meeting scheduled for January 30-31, market expectations lean towards the central bank maintaining unchanged interest rates.

In the realm of other precious metals, silver recorded a 0.5 percent increase in spot transactions, reaching $22.91 per ounce. Meanwhile, platinum experienced a 0.2 percent decline, falling to $911.18, and palladium saw a 0.3 percent decrease, reaching $952.33.