Gold stabilized in early Tuesday trading ahead of central bank meetings this week that could provide insights into the global economy and monetary policy prospects, but the metal, which is considered a safe haven, is heading for its best monthly performance in almost a year in light of the conflict between Israel and the Palestinian Hamas movement.
Change in prices
Spot gold rose as much as $2,009.29 an ounce on Friday, the highest level since mid-May, as investors searched for safety amid the Middle East crisis.
The demand for safe havens led to gold rising from $1,809.50 on October 6, one day before the Hamas attack on Israel. It is now on track to achieve a monthly increase of eight percent, which is the highest percentage since November 2022.
By 0306 GMT, spot gold fell 0.1 percent to $1,994.15 per ounce. US gold futures fell 0.1 percent to $2,003.60.
Kyle Rhoda, a financial markets analyst at Capital.com, said it appears that Israel's taking a more measured approach in its incursion into Gaza has somewhat alleviated fears of a widening crisis in the Middle East.
He continued, however, that the decline below $2,000 is only marginal, and the price still reflects the high risks of escalation of the conflict.
Investors' focus this week is on the monetary policy decision that the Federal Reserve will take tomorrow, Wednesday, followed by the US monthly jobs report on Friday.
The Bank of Japan is expected to adjust its inflation expectations and discuss additional adjustments in terms of controlling bond yields during its meeting on Tuesday. The Bank of England's decision is expected to be issued on Thursday.
As for other precious metals, silver fell in spot transactions 0.6 percent to $23.17, and platinum fell 0.1 percent to $928.58, but both are heading for monthly gains.
Palladium fell 0.3 percent to $1,124.69 and is heading for a decline of more than nine percent this month.
