Gold stays above $2000 as the war in the Middle East fuels a rush for safe assets

30 Oct 2023 , 10:23 AM

A growing Middle East crisis kept investors’ demand for the safe-haven commodity rising as they prepared for this week’s meeting of the U.S. Federal Reserve. On Monday, gold prices remained above the crucial $2,000 mark.

Spot gold had dropped 0.1% to $2,003.18, an ounce. Futures for US gold increased by 0.8% to $2,013.40.

Investors flocked to safe-haven bullion on Friday, fearing a worldwide economic fallout from the Israel-Hamas conflict, pushing gold prices to $2,009.29 an ounce, their highest level since mid-May.

Early on Monday, Israeli troops supported by tanks advanced on the enclave in a ground assault, prompting Palestinians in northern Gaza to report heavy fire and airstrikes.

The Commerce Department released a report on Friday that showed a rise in U.S. consumer spending in September despite persistently high monthly inflation.

High inflation will plague the global economy in 2019, according to 75 percent of the more than 200 analysts surveyed by Reuters. This suggests that interest rates will also stay higher for a longer period of time.

In the week ending October 24, COMEX gold speculators increased their net long position by 48,815 contracts to 90,682, according to CFTC statistics released on Friday.

After 40 years of membership, Swiss precious metals refinery Valcambi has resigned from the Swiss Association of Precious Metal Manufacturers and Traders (ASFCMP).

Although at a slower rate than the previous year, purchases of physical gold during a significant Indian holiday increased last week as local prices were close to record highs and premiums in main consumer China continued to ease. 

Spot silver eased 0.3% to $23.07, platinum fell 0.3% to $900.74 and palladium was steady at$1,121.88.

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