Gold stabilized on Tuesday ahead of central bank meetings this week that may provide insights into the global economy and monetary policy outlook. The safe-haven metal is on track for its best monthly performance in nearly a year, driven by the war between Israel and the Palestinian Islamic Resistance Movement (Hamas). Gold prices in spot transactions reached up to $2009.29 per ounce on Friday, the highest level since mid-May, as investors sought safety amid the Middle East crisis. The demand for safe havens has pushed gold up from $1809.50 on October 6, just one day before Hamas's attack on Israel. It is now set for an eight percent monthly increase, the highest since November 2022.
As of 03:06 GMT, gold in spot transactions dropped by 0.1 percent to $1994.15 per ounce, while U.S. gold futures fell by 0.1 percent to $2003.60. Kyle Rodda, a financial market analyst at Capital.com, noted, "It seems that Israel's more measured approach in its incursion into Gaza has somewhat eased fears of an escalation in the Middle East crisis." He added, "However, a retreat below $2000 is only marginal, and the price still reflects significant risks of conflict escalation."
This week, investors are particularly focused on the monetary policy decision from the Federal Reserve (U.S. central bank) on Wednesday, followed by the U.S. monthly jobs report on Friday. The Bank of Japan is expected to adjust its inflation forecasts and consider further adjustments on bond yield control during its meeting on Tuesday. The Bank of England's decision is also anticipated on Thursday.
For other precious metals, silver in spot transactions decreased by 0.6 percent to $23.17, while platinum fell by 0.1 percent to $928.58; however, both are poised for monthly gains. Palladium decreased by 0.3 percent to $1124.69 and is set to incur a drop of over nine percent this month.
