Gold prices rose on Wednesday and were set for a monthly gain on growing optimism about a possible U.S. interest rate cut soon and the killing of Hamas political bureau chief Ismail Haniyeh in Iran.
Spot gold rose 0.4% to $2,416.79 per ounce by 0401 GMT, and was up nearly 4% on the month.
U.S. gold futures rose 0.5% to $2,414.80.
Kyle Rodda, a financial markets analyst at Capital.com, said that Haniyeh's killing, which was announced by Hamas and Iran's Revolutionary Guard, is somehow driving demand for gold as a safe haven.
As markets try to assess the implications of Haniyeh's killing, prices will benefit further if there is a major escalation in tensions, Roda added.
The US Federal Reserve is expected to keep interest rates unchanged later on Wednesday at the conclusion of its meeting, and policymakers will lay the groundwork for a move to begin
Interest rate cut in September.
“The market wants to hear confirmation that a September rate cut is on the cards and will be the start of a policy easing cycle,” said Rodda. “Gold will rally if the Fed’s tone suggests multiple cuts are coming.”
Important US data
Traders will also be watching the U.S. Census Bureau's employment report later in the day and Friday's U.S. jobs report. Data released on Tuesday showed that U.S. job openings fell by 46,000 to 8.184 million by the last day of June.
As for other precious metals, silver rose in spot transactions by 0.7% to $28.60 per ounce.
Platinum rose 1% to $968.80 an ounce, and palladium rose 1.3% to $900.21 an ounce. But both metals were headed for monthly declines.
