Gold rises with increased demand due to tension in the Middle East

Gold prices climbed on Monday, lingering just below the previous session’s record high, driven by escalating tensions in the Middle East that bolstered demand for the precious metal as a safe haven.

As of 0056 GMT, spot gold rose by 0.3 percent to $2,350.59 per ounce, following its historic peak of $2,431.29 per ounce on Friday.

Meanwhile, US gold futures dipped by 0.3 percent to $2,366.40 per ounce.

Iran’s direct attack on Israel heightened concerns among Israelis, fueling fears of a potential broader conflict.

Recent US economic indicators, particularly on the labor market and inflation, have reignited expectations in the market that the Federal Reserve may consider interest rate cuts.

However, higher interest rates typically diminish the allure of holding non-interest-bearing assets like gold.

In the realm of other precious metals, silver edged up in spot transactions by 0.4 percent to $27.98 per ounce, while platinum dipped slightly by 0.1 percent to $973.05 per ounce. Palladium saw a decline of 1 percent to $1,038.99 per ounce.