Gold prices soar on geopolitical risks, rate-cut bets
NEW YORK: Gold prices scaled a one-week peak on Thursday, steered by simmering Middle East tensions and cooler US economic data that fuelled fresh bets on Federal Reserve rate cuts.
Spot gold gained 0.9% at $3,383.79 an ounce by 0930 ET (1330 GMT), its highest level since June 5. US gold futures climbed 1.8% to $3,404.60.
'Gold is up for the second straight day largely on heightened geopolitical risks. If gold clears $3,400 again, minor hurdles at $3,417 and $3,431 remain — but a breakout to new all-time highs looks likely ultimately,' said Peter Grant, vice president and senior metals strategist at Zanier Metals.
US President Donald Trump said the US was moving personnel out of the Middle East because it 'could be a dangerous place'. Iranian Defence Minister Aziz Nasirzadeh also said on Wednesday that if Iran was subjected to strikes it would retaliate by hitting US bases in the region.
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