Gold prices keep steady amid geopolitical pressures
Gold prices remained firm on Monday, staying close to the record-high levels reached in the previous session, with spot gold up 0.6 per cent to $2,357.99 per ounce, while US gold futures held steady at $2,374.30, as reported by Reuters.
Traders closely monitored developments in the Middle East conflict, leading to safe-haven buying of assets like gold.
Gold has shown resilience in various market conditions in 2024, becoming a versatile asset.
It surpassed $2,400 in the previous session and has gained over 14 per cent this year, driven by central bank purchases and safe-haven demand amid geopolitical tensions.
Despite strong US economic data, Federal Reserve Bank of Boston President Susan Collins is considering interest rate cuts to support the economy.
Lower interest rates make holding gold more attractive. China saw an increase in physical gold premiums due to demand to stabilise the yuan, while high gold prices in India led to discounts from dealers for the sixth consecutive week.
Spot silver rose 1.8 per cent to $28.39 per ounce, reaching its highest level since early 2021 on Friday.
Analysts at ANZ Research predict that silver will outperform gold as investment flows increase, with gold expected to trade near $2,500/oz and silver above $31/oz by the end of 2024.
