Gold keeps advancing to record levels thanks to strong demand

Gold prices rose on Monday and hovered below a record high level reached in the previous session, as escalating tension in the Middle East enhanced appetite for the precious metal, which is considered a safe haven.

According to Reuters, by 0056 GMT, gold in spot transactions rose 0.3% to $2,350.59 per ounce. Gold reached an all-time high of $2,431.29 an ounce on Friday.

US gold futures fell 0.3% to $2,366.40 an ounce.

Recent US economic data on the labor market and inflation have once again caused market expectations that the Federal Reserve (the US central bank) will reduce interest rates.

As for other precious metals, silver rose in spot transactions by 0.4% to $27.98 per ounce, and platinum fell by 0.1% to $973.05 per ounce. Palladium fell 1% to $1,038.99 an ounce.