Gold hits near 1-week peak

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Gold prices rose to a near one-week high on Monday as a slight pullback in the US dollar and escalating tensions in the Middle East lifted its safe-haven appeal.

Spot gold was up 0.4 percent at $2,021.09 per ounce, hitting its highest since Feb. 13. US gold futures also rose 0.4 percent to $2,032.40 per ounce.

“Given recent geopolitical developments that calls for tensions to drag on for longer, the yellow metal is finding some renewed traction on safe-haven flows,” said IG market strategist Yeap Jun Rong.

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A UK-registered cargo ship reported being under attack in the Bab al-Mandab Strait off Yemen on Sunday, while UK Maritime Trade Operations agency reported crew abandoning a ship off Yemen after an explosion.

Meanwhile, the dollar index was down 0.1 percent , making greenback-priced bullion more affordable to overseas buyers.

“The FOMC (Federal Open Market Committee) minutes will be on watch for greater cues on Fed’s policy outlook, with any hawkish take from policymakers likely to renew jitters of rates potentially being kept high for longer and that may not be good news for gold prices.” Jun Rong said. – Reuters

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