[BENGALURU] Gold prices rose on Monday (Jun 16), nearing a two-month high as investors sought refuge in safe-haven assets after intensified clashes between Israel and Iran stoked fears of a broader regional conflict.
Spot gold gained 0.4 per cent to US$3,447.07 an ounce, as at 0021 GMT, after hitting its highest level since Apr 22 earlier in the session.
US gold futures gained 0.4 per cent to US$3,467.20.
Israel and Iran launched fresh attacks on Sunday, killing and wounding civilians and raising concerns of a broader regional conflict, with both militaries urging civilians on the opposing side to take precautions against further strikes.
US President Donald Trump said on Sunday that he hopes Israel and Iran can broker a deal but said sometimes countries have to fight it out first.
The US Federal Reserve is scheduled to convene its policy meeting on Jun 17 to 18, with its decision due Wednesday.
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While the central bank is widely anticipated to keep interest rates steady, markets are keen for signals on potential rate cuts in the months ahead.
The Fed has held its benchmark Fed funds rate at 4.25 to 4.5 per cent since December, following a quarter-point reduction.
Futures markets suggest expectations for two rate cuts by year-end, possibly starting in September, bolstered by tame inflation data last week.
Gold, often considered a safe-haven asset during times of geopolitical and economic uncertainty, tends to thrive well in low-interest-rate environment.
Meanwhile, US consumer sentiment improved for the first time in six months in June as trade tensions between the US and China eased, but households worried about the economy’s trajectory.
Elsewhere, spot silver was down 0.2 per cent at US$36.23 per ounce, platinum rose 0.6 per cent to US$1,234.47, while palladium gained 0.9 per cent to US$1,036.58. REUTERS
