Gold hits near 2-month high as Middle East conflict boosts safe-haven demand
(Reuters) -Gold rose for a fourth straight session to a near two-month high on Monday, as intensified clashes between Israel and Iran over the weekend stoked fears of a broader regional conflict, pushing investors towards safe-haven assets.
Spot gold gained 0.3% to $3,442.09 an ounce, as of 0246 GMT, after hitting its highest level since April 22 earlier in the session.
U.S. gold futures advanced 0.3% to $3,461.90.
"It's the joint political risk premium that's rising due to the Iran-Israel conflict at this point that is boosted safe-haven demand for gold," said Kelvin Wong, a senior market analyst, Asia Pacific at OANDA.
"We have a clear break above $3,400 right now and the short term uptrend is intact. We are seeing resistance level at $3,500 and with the possibility of breaking new high above the $3,500 level."
Israel and Iran launched fresh attacks on Sunday, killing and wounding civilians and raising concerns of a broader regional conflict, with both militaries urging civilians on the opposing side to take precautions against further strikes.
U.S. President Donald Trump said he hopes Israel and Iran can broker a deal but said sometimes countries have to fight it out first.
Gold often considered a safe-haven asset during times of geopolitical and economic uncertainty.
Investors this week will look forward to host of central bank monetary policy decisions, with the spotlight on the U.S. Federal Reserve on Wednesday.
The U.S. central bank is widely anticipated to keep interest rates steady, with markets awaiting for signals on potential rate cuts in the months ahead.
Futures markets suggest expectations for two rate cuts by year-end, possibly starting in September, bolstered by tame inflation data last week. [FEDWATCH]
Elsewhere, spot silver steady at $36.29 per ounce, platinum rose 0.4% to $1,233.87, while palladium gained 1.3% to $1,040.96.
(Reporting by Brijesh Patel and Anmol Choubey in Bengaluru; Editing by Rashmi Aich)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
16 minutes ago
- Time of India
After Israeli bombings, Iran signals strategic shift on nuclear commitments; mulls Non-Proliferation Treaty exit
A man looks at flames rising from an oil storage facility after it appeared to have been struck by an Israeli strike in Tehran. (Pic credit: AP) As Israel continues to target nuclear sites in Iran, Tehran on Monday said that its parliamentarians are preparing a bill that will push it towards exiting the nuclear Non-Proliferation Treaty. According to a report by Reuters, Iran's foreign ministry spokesperson Esmaeil Baghaei said, "In light of recent developments, we will take an appropriate decision. Government has to enforce parliament bills, but such a proposal is just being prepared and we will coordinate in the later stages with parliament." Meanwhile, he also reiterated Tehran's official stance against developing nuclear weapons. Is Iran violating NPT? This comes amid escalating tensions between Israel and Iran as both countries continue to launch waves of missiles at each other. The timing of this statement is also crucial, as Israel alleged that Iran is on the verge of building a nuclear bomb. However, Iran denied the allegations, asserting that its nuclear programme is peaceful. Iran's President Masoud Pezeshkian echoed that position on Monday, saying nuclear arms violate the country's core religious principles. But last week, the IAEA said that Iran violated its NPT obligations. Baghaei said the recent Israeli attacks and the IAEA resolution played a direct role in Tehran's strategic reassessment. "Those voting for the resolution prepared the ground for the attack," he said. The 1970 treaty restricts signatories from pursuing nuclear weapons in exchange for access to civilian nuclear technology and oversight by the International Atomic Energy Agency (IAEA). Proposal in initial stages According to Reuters' report, no decision on quitting the NPR has been made yet, but the proposal is in initial stages of legal process. Meanwhile, Baghaei criticised Israel's own nuclear stance, highlighting that the country is not a signatory to the NPT and is widely believed to possess an undeclared nuclear arsenal. "The Zionist regime is the only possessor of weapons of mass destruction in the region," he said.
NDTV
17 minutes ago
- NDTV
US Police Arrest Vance Boelter For Shooting Minnesota Lawmakers
Minneapolis: A massive two-day manhunt ended on Sunday with the arrest of Vance Boelter, 57, for allegedly killing a Minnesota Democratic state lawmaker and her husband while posing as a police officer, Governor Tim Walz said. Boelter allegedly shot dead Melissa Hortman, the top Democrat in the Minnesota House, and her husband, Mark, in their home on Saturday - a crime Governor Tim Walz characterized as a "politically motivated assassination." Authorities said Boelter also allegedly shot and wounded another Democratic lawmaker, state Senator John Hoffman, and his wife Yvette at their home a few miles away. "After a two-day manhunt, two sleepless nights, law enforcement have apprehended Vance Boelter," Walz told a news conference. "One man's unthinkable actions have altered the state of Minnesota. "A moment in this country where we watch violence erupt, this cannot be the norm. It cannot be the way that we deal with our political differences. Now is the time for us to recommit to the core values of this country, and each and every one of us can do it." Walz said Hoffman, who had been hit with nine bullets, came out of his final surgery and was moving towards recovery. Boelter has links to evangelical ministries and claimed to be a security expert with experience in the Gaza Strip and Africa, according to online postings and public records reviewed by Reuters. Boelter was charged with two counts of second-degree murder and two counts of second-degree attempted murder, the criminal complaint showed. Three of those charges are punishable with jail terms of up to 40 years, according to the complaint unsealed on Sunday. Boelter had been impersonating a police officer while carrying out the shootings, wearing an officer's uniform and driving a Ford SUV with police-style lights, according to a Hennepin County criminal complaint unsealed on Sunday. Boelter fled on foot early on Saturday when officers confronted him at Hortman's Brooklyn Park home, said authorities who had warned residents to stay indoors for their own safety and unleashed the state's biggest manhunt. When police searched Boelter's SUV after the shootings they discovered three AK-47 assault rifles, a 9-mm handgun, and a list of other public officials including their addresses, the criminal complaint showed. Working on a tip that Boelter was near his home in the city of Green Isle, more than 20 SWAT teams combed the area, aided by surveillance aircraft, officials said. Boelter was armed but surrendered with no shots fired. "The suspect crawled to law enforcement teams and was placed under arrest," Lieutenant Colonel Jeremy Geiger of the Minnesota State Patrol told the briefing. "The suspect was taken into custody without any use of force." The operation to capture Boelter, drawing on the work of hundreds of detectives and a wide range of federal, state and local law enforcement agencies, was the largest manhunt in state history, Brooklyn Park police Chief Mark Bruley said. "Now begins the hard work of looking at what the motive is," Bruley said. The killing was the latest episode of high-profile US political violence. Such incidents range from a 2022 attack on former Democratic U.S. House Speaker Nancy Pelosi's husband at their home, to an assassination bid on Donald Trump last year, and an arson attack at Pennsylvania Governor Josh Shapiro's house in April.
Time of India
17 minutes ago
- Time of India
British carmaker JLR trims FY26 margin forecast on US tariff concern
British luxury carmaker Jaguar Land Rover lowered its fiscal 2026 earnings before interest and taxes margins forecast to 5 per cent -7 per cent on Monday from 10 per cent earlier, amid uncertainty in the global auto industry as US tariffs loom. Shares in the company's Indian parent Tata Motors slumped as much as 5.2 per cent in early trade following the announcement. The revised EBIT margin forecast is also below JLR's reported 8.5 per cent margin for the previous fiscal year ended March 31. JLR added it sees free cash flow of close to zero in fiscal 2026. The company, which derives over quarter of its sales from the US, had temporarily paused shipments to the country after President Donald Trump slapped a 25 per cent duty on all foreign-made vehicles sold in the world's second-largest car market. The 'Defender' sport utility vehicle maker said it is re-allocating available units to "accessible markets", to boost profits. It added that it continues to engage with both the US and UK governments regarding a trade deal signed in May, which allows the UK to export 100,000 cars a year to the US at a 10 per cent tariff, below the 25 per cent levy for other nations. While JLR's " Range Rover " SUV lineup is manufactured in the UK, the popular "Defender" is made in Slovakia, a member of the European Union, which does not yet have a trade pact with the Trump administration. The carmaker said it is assessing pricing actions in the US to help offset the tariff impact. Analysts have said JLR may be less affected by the increased costs associated with the tariffs, thanks to a wealthier customer base that is unlikely to be deterred by a bigger price tag. However, Tata Motors remains among the most exposed Indian automakers to the US duties, as JLR lacks local manufacturing in the country, unlike most of its rivals, including German brands Mercedes-Benz and BMW.
