Gold soars amid renewed Fed rate cut bets

Gold prices rose on Monday to settle above the $2,050 level due to the attractiveness of a safe haven as a result of growing tensions in the Middle East and renewed bets on an early cut in interest rates by the Federal Reserve (the US central bank).

According to Reuters, by 0639 GMT, gold in spot transactions rose 0.4% to $2,056.20 per ounce, after recording on Friday the largest daily gain since December 12.

US gold futures rose 0.4% to $2,060.10.

Overall, traders are betting on a 166 basis point cut in interest rates this year, which is higher than Friday morning’s bets of 150 basis points.

According to the London Stock Exchange Group’s application to measure the probability of changing interest rates, traders expect by 79% that the Federal Reserve will begin reducing interest rates in March.

Silver rose in spot transactions 0.4% to $23.25 per ounce, platinum rose 0.7% to $911.85, and palladium gained 1% to $985.46.