ALBAWABA – Gold prices held gains on Tuesday as investors dealt in a mixed bag of stocks worldwide and oil prices surged in the wake of the surprise attack launched by the Hamas-led coalition of Gaza-based Palestinian resistance groups on Saturday.
Meanwhile, the United States (US) Federal Reserve (Fed) officials over the weekend raising expectations for a US rate hike pause also bolstered higher gold prices, according to Bloomberg.
Oil prices rose more than 4 percent on Monday before easing slightly in later trading sessions, according to Reuters, as Bloomberg highlighted the implications of the situation in Palestine spiralling into a full-blown war on the region and oil prices globally.
Gold prices are susceptible to changes in other markets, such as currencies and stocks worldwide, as well as oil prices - Shutterstock
Stocks worldwide also suffered the rising risk-off trend resulting from the threats of escalation in the Middle East, as investors shift to safe havens, Agence France-Presse (AFP) reported.
Gold prices up Monday through Tuesday
According to Bloomberg, gold prices rose 1.6 percent on Monday, marking the highest rise since May, while December futures rose the most since August, stoked by the geopolitical tensions.
Bullion is also benefiting from a shift in mindset over the rate outlook, as US policymakers claim that the recent surge in US Treasury yields — which went into reverse on Tuesday — may suffice in the stead of another hike in the benchmark US interest rate, as reported by Bloomberg. Usually, higher rates are generally negative for non-interest-bearing gold.
Spot gold was 0.1 percent higher at $1,862.71 an ounce as of 8:22 a.m. in Singapore. The Bloomberg Dollar Spot Index was little changed. Silver dipped, while palladium and platinum edged higher.
