Gold hits near 2-month high as Middle East conflict boosts safe-haven demand
June 16 (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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Sky News
15 minutes ago
- Sky News
Israel-Iran live: Eight killed in Israel as Iron Dome breached; Iran threatens to leave key nuclear treaty
Iran and Israel have exchanged attacks for a fourth night, with Iranian rockets killing at least eight in central Israel and explosions reported in Tehran. Iran's intelligence chief has been reported dead. Follow the latest here and listen to Trump 100 as you scroll.
BBC News
15 minutes ago
- BBC News
America dey consider to impose travel ban on Nigeria, Ghana and 34 oda kontris?
At least 25 African kontris fit face partial or total US travel bans inside one new anti-immigration measure by US President Donald Trump administration, Reuters report. According to one internal State Department memo wey Reuters see, America goment wan extend dia travel restrictions on 36 more kontris, wey go potentially ban citizens of these kontris entry into di US. Di State Department bin raise concerns on top security, lack of cooperation on deportation of nationals and overstaying of visas among di kontris under review ova di next 60 days. "Di Department don identify 36 kontris of concern wey dem fit recommend for full or partial suspension of entry if dem no meet di established conditions and requirements within 60 days". African kontris wey dem dey reportedly chook eye include: Oda kontris include: If dem carry out di ban, e go be significant expansion of di travel ban wey di US goment impose earlier wey affect at least 10 African kontris. Dis go mean say 2/3rds of African kontris go dey affected by di travel restrictions. Among di concerns di State Department bin raise na lack of a competent or cooperative goment by some of di kontris dem mention to produce reliable identity documents. Anoda concern na "questionable security" of dat kontri passport. Tori be say some kontris no dey cooperate in facilitating di removal of dia nationals from di United States, nationals wey di US order say make dem remove. Some oda kontris dey overstay di U.S. visas dem give dia citizens.
The Independent
20 minutes ago
- The Independent
The five big questions that will dominate the G7
World leaders are gathered in Canada for a G7 summit set to be dominated by intense talks about the escalating conflict in the Middle East. With missiles being fired back and forth between Israel and Iran, Sir Keir Starmer, Donald Trump and others are in Kananaskis, Alberta until Tuesday. But while the summit has been overshadowed by rising tensions elsewhere, there are still a series of thorny issues for the G7 leaders to discuss. The Independent looks at the five big questions that will dominate the agenda at the summit. Trump v Carney A focal point of the whole summit will be the relationship between Mr Trump and his host, Canadian prime minister Mark Carney. The former Bank of England boss won April's general election riding a wave of anti-Trump sentiment across the country, following the US president's threats to turn Canada into America's 51st state. But, as host, it will fall to Mr Carney to build bridges between Mr Trump and the rest of the G7. They are scheduled for a meeting on Monday morning, with Mr Carney hoping to strike a trade and security deal with Mr Trump and exempt the country from damaging tariffs on steel, aluminium and cars. Mr Carney has a mammoth task on his hands to keep Mr Trump onside. The last time Canada hosted the G7 in 2018, Mr Trump lashed out at former PM Justin Trudeau and left without signing an agreed joint statement. Trump tariffs Meanwhile Mr Trump's relations are not just strained with Canada. All of the G7 leaders will want to quiz the US president on his future tariff plans and seek carve outs for their own countries from the damaging levies. His 'Liberation Day' measures are still on hold after the US International Trade court struck them down. But with the White House plotting ways to reimplement the universal tariffs, leaders at the G7 will be keen to push towards exemptions in the future. The World Bank has sharply downgraded its global economic outlook over Mr Trump's use of tariffs - blaming a 'substantial rise in trade barriers'. Russia and Ukraine Mr Trump campaigned on the promise he would end Russia's war in Ukraine within 24 hours of being re-elected. Six months on, negotiations over a peace deal between Vladimir Putin and Volodymyr Zelensky have stalled. G7 leaders will be piling pressure on Mr Trump to back tougher sanctions against Putin and his supporters. Sir Keir especially will be seeking assurances from Mr Trump that he will provide support to his so-called coalition of the willing, a peacekeeping force to be sent to Ukraine in the event of a permanent ceasefire. But, in a sign of the challenge they face, the US President recently suggested it might be better to let Ukraine and Russia 'fight for a while' in a sign of his waning interest in ending the three-year conflict. The environment Going into the summit, Canada wanted to talk about climate change and the environment, having suffered its worst wildfire season on record in 2023. Officials stressed that it was on the agenda for the summit, with the country hoping to focus world leaders on the growing global forest fire threat. Israel-Iran crisis But top of the agenda will be the unfolding crisis in the Middle East. Tensions between Iran and Israel are high and both sides are threatening escalation, while world leaders around the globe are calling for peace. Mr Trump said it is'possible' America could get involved in the conflict, which would present a challenge to allies who would then be expected to get involved as well. The crisis threatens to close the crucial Strait of Hormuz shipping lane, which would deal a severe blow to global trade.
