BENGALURU: Gold rose to a more than two-month peak on Wednesday as the escalating conflict in the Middle East sent investors flocking towards the safe-haven metal.
Spot gold increased nearly 1% to $1,939.49 per ounce by 11:10 a.m. ET (1510 GMT), after hitting its highest since Aug. 1. US gold futures jumped 0.8% to $1,951.50.
“Elevated risks in the Middle East are prompting safe-haven demand for gold, the technical also has improved. I think gold will push above $2,000 in the near term,” said Jim Wyckoff, senior analyst at Kitco Metals. “Gold will pull back if the Middle East situation simmers down, but right now the market place is expecting a further escalation.”
Market focus is also on Federal Reserve Chair Jerome Powell’s speech due on Thursday, which could offer some clarity on the Fed’s interest rate path after recent dovish comments from several US policymakers.
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