Gold rises as concerns mount over conflict in the Middle East

Gold prices rose on Monday as escalating tensions in the Middle East led to increased demand for the precious metal as a safe haven amid limited transactions as investors awaited statements by the Chairman of the Federal Reserve (US Central Bank) to clarify the matter regarding interest rates.

According to Reuters, gold rose in spot transactions by 0.4% to $2,025.99 per ounce by 0403 GMT.

US gold futures also rose 0.4% to $2,025.20.

Tim Water, chief market analyst at KCM Trade, said that the instability in the Middle East keeps investors interested in gold as a source of safe haven.

Investors are concerned about the growing geopolitical risks in the Middle East.

Markets expect the US central bank to keep interest rates unchanged at its meeting scheduled for January 30-31.

As for other precious metals, silver rose in spot transactions by 0.5% to $22.91 per ounce. Platinum fell 0.2% to $911.18, and palladium fell 0.3% to $952.33.