Gold consolidated gains on Monday, hovering near record-high levels hit in the previous session, as traders kept a close eye on developments surrounding the Middle East conflict, prompting safe-haven buying of assets such as bullion.
Spot gold was up 0.6 percent at $2,356.69 per ounce, after hitting an all-time high of $2,431.29 on Friday. US gold futures was steady at $2,373.30.
“Gold remains in vogue as a financial asset given the combination of geopolitical risks and the prospects of Fed interest rate easing in the second half of the year. In many respects, gold is taking on the appearance of being as ‘asset for all occasions’ given its ability to rally under varying market dynamics in 2024,” said Tim Waterer, chief market analyst, KCM Trade.
Bullion rose above the $2,400 level in the previous session and has gained over 14 percent so far this year, fueled by strong central bank buying, safe-haven inflows amid continued geopolitical risks.
Despite recent US economic data showing strong labor market and high inflation, Federal Reserve Bank of Boston President Susan Collins is eyeing a couple of interest rate cuts this year.
