Gold prices surge above $1400
Gold surged above $1,400 on Monday, almost near its six-year high touched in the previous session. The rise in prices were driven by positive signals of rate cuts from global central banks and rising political tensions between the United States and Iran.
Spot gold rose 0.6% at $1,406.83 per ounce as of 0959 GMT, which headed for its fifth session of gains. Gold prices hit its highest since 2013 on Friday to $1,410.78.
US gold futures surged 0.7% to $1,410.20 an ounce. Analysts said that the rising tensions between the US and Iran supported the gold prices.
SPDR Gold Trust rose 4.57% on Friday from its previous session. This was its biggest one-day percentage gain since 2008.
Last week the US Federal Reserve and the European Central Bank gave signals that they were open to ease policies to counter economic slowdown due to trade tensions. This impacted the dollar which fell to a three-month low against many currencies on hopes that interest rates would be reduced next month.
Meanwhile, American President Donald Trump said on Sunday that he is not intending to go on war with Tehran. However, tensions remain high between the two countries with Washington due to announce fresh sanctions on Iran.
Gold prices rose 7.7% this month, and over $70 in the past one week.
Experts said that gold holding above the $1,400 level is a positive signal of consolidation after last week’s rise in prices. The surge in gold prices pushed up the silver too.
Silver rose 0.1% higher to $15.37 per ounce and platinum climbed 0.9% at $813.82. Palladium rose 1.1% to $1,516.03 an ounce.