Gold prices continued to climb on Monday, reaching their highest level in nearly two months as escalating tensions between Israel and Iran spurred investor interest in safe-haven assets.
Spot gold rose 0.3% to $3,442.09 an ounce as of 02:46 GMT, after touching its highest level since April 22 earlier in the session. US gold futures also advanced 0.3% to $3,461.90.
The gains mark the fourth consecutive session of increases for the precious metal, supported largely by concerns over the intensifying conflict in the Middle East. Over the weekend, both Israel and Iran launched fresh attacks, prompting fears of a broader regional escalation and adding to geopolitical risk.
“The joint political risk premium tied to the Iran-Israel conflict is currently driving up demand for gold as a safe haven,” said Kelvin Wong, senior market analyst at OANDA.
He noted that the recent price action confirmed a break above the $3,400 level, with resistance seen at $3,500.
Gold is traditionally viewed as a store of value during periods of geopolitical instability and economic uncertainty. In recent months, it has also benefited from broader macroeconomic factors including expectations for lower interest rates and central bank purchases.
The Federal Reserve’s upcoming policy meeting on Wednesday is now in focus. The central bank is widely expected to keep rates unchanged, but market participants will be watching closely for any signals regarding potential rate cuts later in the year. Futures markets currently reflect expectations for two rate cuts by the end of 2025, potentially starting in September, supported by subdued inflation readings released last week.
Beyond geopolitical tensions and monetary policy, structural demand for gold has remained strong. The metal has gained more than 30% year-to-date, bolstered in part by global central bank diversification efforts away from the US dollar.
In other precious metals, spot silver was steady at $36.29 per ounce. Platinum rose 0.4% to $1,233.87, while palladium climbed 1.3% to $1,040.96.
