SINGAPORE: Gold prices climbed for a fourth consecutive session on Monday, reaching their highest level in nearly two months, as escalating hostilities between Iran and Israel over the weekend sparked fears of a wider regional conflict and pushed investors towards safe-haven assets.
As of 0246 GMT, spot gold was up 0.3 per cent at $3,442.09 an ounce, after earlier touching its highest level since April 22. US gold futures also gained 0.3 per cent to $3,461.90.
“The rising political risk premium due to the Iran-Israel conflict has driven increased demand for gold as a safe-haven,” said Kelvin Wong, senior market analyst for Asia Pacific at OANDA. “We’ve clearly broken above the $3,400 level, with the short-term uptrend intact. The next resistance is around $3,500, and there’s potential for a new high beyond that.”
On Sunday, both Iran and Israel launched new strikes, reportedly killing and injuring civilians. The latest exchange has heightened concerns of a broader conflict, as both sides advised civilians to take precautions against possible further attacks.
Meanwhile, former US President Donald Trump commented that while he hoped the two nations could reach a deal, “sometimes countries have to fight it out first.”
Gold is traditionally seen as a safe-haven during periods of geopolitical tension and economic uncertainty.
Investors are also closely watching upcoming central bank decisions this week, particularly from the US Federal Reserve which is expected to announce its policy on Wednesday. The Fed is widely expected to keep interest rates unchanged but may offer clues about possible rate cuts later this year.
Market expectations, supported by last week’s subdued inflation data, suggest the Fed could implement two rate cuts before the end of 2025, with the first possibly as early as September, according to futures data.
In other precious metals, spot silver held steady at $36.29 an ounce, platinum rose 0.4 per cent to $1,233.87, and palladium climbed 1.3 per cent to $1,040.96.
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