Gold holds above $2,000 supported by safe haven demand

Gold prices stabilized above the important $2,000 level today, Monday, supported by demand for safe havens in light of the escalation of the conflict in the Middle East, while investors await the results of the Monetary Policy Committee meeting at the Federal Reserve (US Central Bank) this week.

By 0245 GMT, gold settled in spot transactions at $2,003.17 per ounce, and US gold futures contracts rose 0.7 percent to $2,013 per ounce.

According to Reuters, market parties are now awaiting the US Central Bank’s monetary policy decision on Wednesday, and it is widely expected that the bank will keep the interest rate unchanged and that the focus will be on the statements of Bank Chairman Jerome Powell.

A poll conducted by Reuters showed that inflation will continue to haunt the global economy next year, as 75% of 200 economists polled by Reuters said that the main risk is that inflation will be higher than their expectations, which indicates that interest rates will also remain higher for a longer period. . Although gold is considered a hedge against inflation, higher interest rates undermine the appetite for the non-interest-bearing precious metal.

As for other precious metals, silver settled in spot transactions at $23.15 per ounce. Platinum fell 0.3% to $901.35 per ounce, and palladium rose 0.2% to $1,124.48 per ounce.