Gold skids from one-month peak as investors struggle with war worries
GOLD prices slid on Monday (Oct 16) after hitting a near one-month high earlier, as escalating fears of the conflict between Israel and Palestinian militant group Hamas boosted safe-haven bullion more than 3 per cent higher in the last session.
Spot gold fell 0.5 per cent to US$1,921.69 per ounce by 0102 GMT and US gold futures dropped 0.4 per cent to US$1,934.40.
Gold, which is seen as a safe investment during uncertain times, hit its highest since Sep 20 at US$1,934.82 earlier in the session, after surging 3.4 per cent on Friday in its biggest one-day rise in seven months.
US President Joe Biden said on Sunday he believes the Hamas militant group must be eliminated but there should be a path to a Palestinian state after top US officials warned the war between Israel and Hamas could escalate.
The Israeli-Hamas war has sharpened focus on rising geopolitical risks for financial markets, as investors wait to see if the conflict draws in other countries with the potential to drive up oil prices further and deal a fresh blow to the world economy.
US consumer sentiment deteriorated in October, with households expecting higher inflation over the next year, but labour market strength was likely to continue supporting consumer spending.
COMEX gold speculators increased net short position by 11,784 contracts to 14,788 in the week to Oct 10, data showed.
The physical gold market in India flipped to a discount last week as a rebound in domestic prices made buyers walk away, while premiums in China retreated further from recent highs.
In other metals, spot silver fell 0.4 per cent to US$22.62 per ounce, platinum eased 0.2 per cent to US$879.19 and palladium was steady at US$1,147.55. REUTERS
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