Gold Holds Above $2000 Supported by Safe-Haven Demand

Gold prices stabilized above the $2000 level today, Monday, supported by the demand for safe-haven assets amid escalating conflicts in the Middle East. Investors are also awaiting the results of the Federal Reserve's monetary policy committee meeting this week. By 02:45 GMT, spot gold was steady at $2003.17 per ounce, while U.S. gold futures rose 0.7% to $2013 per ounce. Market participants are now looking for the U.S. central bank's monetary policy decision on Wednesday, with widespread expectations that interest rates will remain unchanged and that focus will turn to remarks from Fed Chair Jerome Powell. A Reuters poll showed that inflation will continue to haunt the global economy next year, with 75% of 200 economists surveyed by Reuters stating that the main concern is inflation being higher than their expectations, indicating that interest rates are likely to remain elevated for a longer period. Despite gold being considered a hedge against inflation, higher interest rates dampen demand for the non-yielding precious metal. Regarding other precious metals, silver held steady at $23.15 per ounce in spot transactions. Platinum decreased by 0.3% to $901.35 per ounce, while palladium rose by 0.2% to $1124.48 per ounce.