Gold peaks in 3 months on lifting demand

Shafaq News / Gold prices hit a three-month high on Friday and were set for a second straight weekly gain, with demand bolstered by the Middle East conflict and expectations that the Federal Reserve’s rate hikes are nearing an end.

Spot gold was up 0.2% at $1,978.19 per ounce by 0542 GMT, after hitting its highest since July 20. U.S. gold futures added 0.5% to $1,989.90.

“There is fear that it’s (Israel-Hamas war) going to escalate into something of a broader regional crisis, potentially a protracted conflict... So we are seeing investors positioning in safe havens,” said Kyle Rodda, financial market analyst at Capital.com.

Israeli Defence Minister Yoav Gallant told troops gathered at the Gaza border on Thursday that they would soon see the Palestinian enclave “from inside,” implying that an expected ground invasion to annihilate Hamas could be nearing.

(Reuters)