Precious metals rose for the fourth consecutive session, reaching $1,997 per ounce yesterday.
At the end of the trading session on October 20, each ounce of spot gold in the world increased by 7 USD to 1,981 USD. During the session, the price reached 1,997 USD - the highest since May.
Precious metals are more expensive as investors seek safe havens amid concerns about escalating conflict in the Middle East. Gold rose 2.5% this week, its second straight weekly gain. Since the conflict began, prices have risen nearly $160 an ounce.
World gold price approached the 2,000 USD mark on October 20.
On October 20, the Israeli military announced that it was launching retaliatory strikes on the Gaza Strip at a frequency “unprecedented in decades.” Israel also attacked a mosque in the Jabaliya neighborhood of Gaza City, suspected of storing Hamas assets and weapons.
"People are rushing to buy gold to hedge against political risks. If tensions in the Middle East escalate, gold prices will surpass the $2,000 mark," said Phillip Streible, market strategist at Blue Line Futures.
From a technical perspective, Ole Hansen - Head of Commodity Strategy at Saxo Bank believes that gold could hit the resistance level of $2,075 - the peak reached in 2020.
Investors yesterday also analyzed the speech of the Chairman of the US Federal Reserve (Fed) Jerome Powell. Accordingly, he left open the possibility of continuing to raise interest rates, but also emphasized new risks arising and the Fed needs to act cautiously. Gold prices often move in the opposite direction of interest rates, because this instrument does not pay fixed interest.
In the physical market, gold traders in India - the world's largest consumer market - have been forced to sharply reduce domestic prices, due to slowing demand despite the approaching Dussehra - a major festival in the country.
Other precious metals, such as silver and platinum, also rose yesterday. Silver rose 1.4% to $23.35 an ounce. Platinum rose 0.7% to $896 an ounce. Both posted their second consecutive weekly gain.
Ha Thu (according to Reuters)
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