Gold bars arranged at the Korea Gold Exchange store in Seoul, South Korea, on Friday, Oct. 13, 2023.
Gold prices rose on Monday as escalating tensions in the Middle East lifted bullion's safe-haven appeal, while moves were limited as traders awaited the U.S. Federal Reserve chair Jerome Powell's remarks this week for cues on interest rate trajectory.
There is enough instability still in the Middle East to keep investors interested in gold as part of a safe-haven play, said Tim Waterer, chief market analyst at KCM Trade.
Traders are betting on six quarter-point rate cuts for 2024 in the U.S., up from five cuts a week ago, according to LSEG's interest rate probability app IRPR.
Lower interest rates decrease the opportunity cost of holding bullion.
Persons:
Jerome Powell's, Tim Waterer, Evergrande, Waterer, Powell
Organizations:
Korea Gold Exchange, U.S . Federal, KCM Trade, Investors, U.S, Fed, Traders
Locations:
Seoul, South Korea, U.S, Jordan, Syrian