BENGALURU: Gold prices hovered near the key psychological $2,000 level on Monday, supported by safe-haven demand amid the Middle East conflict, while market participants looked ahead to this week’s US Federal Reserve policy meeting.
“The Middle East conflict is keeping a floor under gold and silver markets. I remain bullish on gold, the conflict will get worse before it gets better, gold can hit all-time high in the near term,” said Jim Wyckoff, senior analyst at Kitco Metals.
Spot gold was down 0.4% at $1,998.39 per ounce by 9:35 a.m. ET (1335 GMT). US gold futures rose 0.5% to $2,008.10. Spot gold prices hit $2,009.29 an ounce on Friday, surpassing $2,000 level for the first time since mid-May, as investors flocked into safe-haven bullion. Israeli troops and tanks attacked Gaza’s main northern city from the east and west.
Gold is consolidating and building a base for further gains, subject to geopolitics, said StoneX analyst Rhona O’Connell in a note. Traders are also keeping an eye on the US central bank’s policy decision due on Wednesday.
While the Fed is widely expected to keep interest rates unchanged, the focus will be on Chair Jerome Powell’s commentary. “If the Fed is going to sound hawkish, then we will see a slightly negative reaction from gold,” Wyckoff said. Although gold is seen as a hedge against inflation, higher interest rates dull non-yielding bullion’s appeal. Spot silver was up 1.6% at $23.52.
Comments
Comments are closed.