Gold prices held steady near the key $2,000 level on Monday, buoyed by safe-haven demand from an escalating Middle East conflict, as investors awaited the outcome from the US Federal Reserve’s policy meeting this week.
Spot gold was steady at $2,003.17 per ounce. US gold futures climbed 0.7 percent to $2,013.00.
Israeli air strikes hit areas near Gaza City’s Shifa and Al-Quds hospitals early on Monday, and Palestinian militants clashed with Israeli forces in a border area east of the city of Khan Younis, in the enclave’s south, Palestinian media reported.
Gold prices hit $2,009.29 an ounce on Friday, surpassing the key psychological $2,000 level for the first time since mid-May, as investors piled into safe-haven bullion on fears of a global economic fallout from the Israel-Hamas conflict.
Market participants now look forward to US central bank policy decision on Wednesday. While the Fed is widely expected to keep interest rates unchanged, the focus will be on Chair Jerome Powell’s commentary.
“The spate of strong economic data means it will force the Fed to retain a hawkish undertone, despite raising concerns over the Middle East conflict,” City Index senior analyst Matt Simpson said.
