Gold hovers above US$2000 mark as Middle East war boosts safety rush
GOLD prices hovered atop the key US$2,000 level on Monday (Oct 30) as an escalating Middle East conflict kept the safe-haven metal increasingly in demand among investors as they now gear up for the US Federal Reserve policy’s meeting this week.
Spot gold edged 0.1 per cent lower to US$2,003.18 per ounce by 0119 GMT. US gold futures climbed 0.8 per cent to US$2,013.40.
Gold prices hit US$2,009.29 an ounce on Friday, surpassing the key psychological US$2,000 level for the first time since mid-May, as investors piled into safe-haven bullion on fears of a global economic fallout from the Israel-Hamas conflict.
Palestinians in northern Gaza reported fierce air and artillery strikes early on Monday as Israeli troops backed by tanks pressed into the enclave with a ground assault.
US consumer spending surged, while monthly inflation remained warm in September, the Commerce Department reported on Friday.
High inflation will dog the world economy next year, with three-quarters of over 200 economists polled by Reuters saying the main risk is that it turns out higher than they forecast, suggesting interest rates will also remain higher for longer.
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Comex gold speculators raised their net long position by 48,815 contracts to 90,682 in the week ended Oct 24, CFTC data showed on Friday.
Swiss precious metals refinery Valcambi has resigned from the Swiss Association of Precious Metal Manufacturers and Traders (ASFCMP) after 40 years of membership.
Purchases of physical gold during a major festival in India improved last week, albeit at a slower pace compared with last year, as domestic prices were sitting at near-record highs, while top consumer China saw premiums easing further.
Spot silver eased 0.3 per cent to US$23.07, platinum fell 0.3 per cent to US$900.74 and palladium was steady at $1,121.88. REUTERS
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