Gold prices up amid tension in the Middle East

Gold prices rose on Thursday, supported by demand for safe havens amid conflict in the Middle East, as investors looked for more clarity on the future path of US interest rates.

According to Reuters, the price of gold in spot transactions rose 0.7% to $2,019.12 per ounce at settlement, a day after it fell to its lowest levels in five weeks.

US gold futures also increased 0.8% to $2021.6.

The United States on Wednesday returned Yemen’s Houthi movement to its list of terrorist groups, with the group’s militants attacking the second US-operated ship in the Red Sea region this week.

Atlanta Fed President Rafael Bostic said he is open to cutting US interest rates sooner if there is “convincing” evidence in the coming months that inflation is falling faster than expected.

Lowering interest rates reduces the opportunity cost of holding bullion.

As for other precious metals, silver rose in spot transactions by 0.9 percent to $22.74 per ounce. Platinum increased 2.4% to $904.74, and palladium rose 2.7% to $940.28.