Home World Israel-Palestine crisis: Gold soars as investors bolt for safety Gold rebounded from seven-month lows hit on Friday, but its upside remained capped by strong US economic data by Reuters October 9, 2023 Image credit: Getty Images Gold prices climbed more than 1 per cent on Monday as clashes between Israeli and Hamas forces over the weekend raised the risk of a wider Middle East crisis and spurred a rush to safe-haven investments like bullion. Spot gold jumped 1.2 per cent to $1,853.79 per ounce by 0621 GMT, having hit its highest level in a week. US gold futures climbed 1.2 per cent to $1,867.80. “Gold has regained its safe-haven status following the geopolitical events over the weekend,” City Index Senior Analyst Matt Simpson said. “We see the potential for gold to head for $1,880, but unless we see bond yields move materially lower, I doubt it can break $1,900 any time soon.” Israel-Palestine crisis impacts gold market The spiralling violence threatens to start a major new crisis in the Middle East, sending oil prices higher and boosting the demand for safe-haven assets like Treasuries, the dollar and the Japanese yen along with gold. Gold rebounded from seven-month lows hit on Friday, but its upside remained capped by strong US economic data that has bolstered the view that the Federal Reserve is unlikely to end its monetary policy tightening cycle in the near term. Last week, data showed that US employment increased by the most in eight months in September, pointing to persistent labour market strength. A hot inflation print later in the week could pave the way for another US interest rate hike this year. Higher US rates raise the opportunity cost of holding gold, which yields no interest. Investors are also focused on the minutes of the US central bank’s September meeting due on Wednesday. Among other metals, spot silver gained 1.3 per cent to $21.87 per ounce, platinum advanced 1.3 per cent to $888.45 and palladium rose 0.7 per cent to $1,165.75. Tags Bullion gold market Israel Treasuries US gold futures You might also like Royal Jordanian airline suspends flights to Beirut, state news agency says Gold tracks down after hitting record high Gold trades near historic $2,500 mark on US Fed rate-cut optimism UK, Egypt issue alerts for Lebanon airspace