As rising concerns over the war between Israel and the Palestinian militant group Hamas drove safe-haven bullion more than 3% higher in the previous session, gold prices fell on Monday after reaching a near one-month high earlier.
Spot gold had decreased 0.5% to $1,921.69 per ounce, and U.S. gold futures had decreased 0.4% to $1,934.40.
After rising 3.4% on Friday, its biggest single-day gain in seven months, gold achieved its highest level since September 20 at $1,934.82 earlier in the session. Gold is seen as a secure investment during turbulent times.
After senior U.S. officials cautioned that the conflict between Israel and Hamas could intensify, U.S. President Joe Biden said on Sunday that he thinks the militant Hamas group must be destroyed but that there should be a way to a Palestinian state.
As investors watch to see if the conflict drags in additional countries with the potential to push up oil prices further and inflict a major blow to the world economy, attention has been drawn to mounting geopolitical concerns for financial markets. Although household expectations for increased inflation over the coming year caused a decline in consumer confidence in the United States in October, the labour market’s resilience was projected to continue to boost consumer spending.
In the week ending October 10, statistics showed that COMEX gold speculators increased their net short position by 11,784 contracts to 14,788.
Last week, the physical gold market in India switched to a discount as buyers withdrew due to a rise in domestic costs, while premiums in China continued to decline from recent highs. Other metals saw a 0.4% decline in spot silver to $22.62 per ounce, a 0.2% decline in platinum to $879.19, and a steady $1,147.55 price for palladium.
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