Gold prices edged higher on Monday (today), nearing their highest levels in two months, as heightened geopolitical tensions—particularly the fierce exchange of fire between Israel and Iran—drove investors toward safe-haven assets.
Spot gold held steady at $3,428.89 an ounce as of 05:08 GMT, after earlier touching its strongest level since April 22. Meanwhile, U.S. gold futures dipped slightly by 0.1% to $3,448.10 an ounce.
“The shared political risk premium is rising due to the conflict between Iran and Israel at this stage, which has boosted demand for gold as a safe haven,” said Kelvin Wong, senior market analyst for Asia-Pacific at OANDA.
He added, “We now have a clear break above $3,400, and the short-term uptrend remains intact. We are seeing resistance at $3,500, with the potential for a new high above that level.”
The surge in gold comes as financial markets grow increasingly cautious, with investors also bracing for a wave of central bank policy announcements this week. All eyes are on the U.S. Federal Reserve, which is expected to maintain interest rates when it issues its decision on Wednesday. However, market participants will be closely watching for any signals pointing to a potential rate cut later in the year.
In other precious metals:
- Silver slipped 0.1% to $36.28 per ounce
- Platinum rose 0.4% to $1,233.12
- Palladium climbed 1.4% to $1,041.85
This movement in safe-haven assets comes amid broader financial unease, with Gulf stock markets seeing a wave of red. Notably, Kuwait’s market lost $6.2 billion in value yesterday, and total Gulf government spending reached $542.1 billion in Q4 of the 2024 budget.
