Gold prices firmed on Monday, nearing its recent record high, amid solid bets of a September interest-rate cut following dovish signals from Federal Reserve Chair Jerome Powell and safe-haven demand due to geopolitical risks in the Middle East.
Spot gold rose 0.3% to $2,518.47 per ounce at 01:45 p.m. ET (1742 GMT), just shy of the record high of $2,531.60 hit last week. U.S. gold futures settled 0.3% higher at $2,555.20.
The dovish signals from Powell's speech on Friday and safe-haven interest and geopolitical risks in the Middle East are precipitating the bid in gold this morning, said Peter A. Grant, Vice President and Senior Metals Strategist at Zaner Metals.
Hezbollah had launched hundreds of rockets and drones at Israel early on Sunday.
"I've got a short term kind of Fibonacci objective (for gold prices) at $2,539.77 and then my secondary is at $2,597.15," Grant added.
"There might be some indication that China is going to come back in, but even if they don't, demand from central banks has been pretty robust regardless of price this year and that's going to continue," Grant said.
Gold demand in top consumers India and China is expected to improve in the next few months, industry officials said.
Spot silver rose 0.6% to $29.98, hitting a more than a month high.
Source : Reuters
