MARKET watchers are expecting gold prices to hover closer to the US$3,000-per-ounce mark, following the commodity’s odds-defying rally despite interest rates and a stronger US dollar. 

Already, prices of the precious yellow metal have hit new highs in recent days, on the back of escalating tensions in the Middle East. 

Spot gold prices have been up about 1 per cent at the close of the Singapore market since April 13, when Iran launched a barrage of missiles and drones targeting Israel. In the US, gold futures are up 0.2 per cent.