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Gold rose on Monday to an all-time high amid geopolitical tensions and continued optimism after the Federal Reserve cut interest rates last week, despite a strong dollar.
Spot gold rose 0.4 percent to $2,631.09 an ounce after hitting an all-time high.
“The market is still reacting to the Fed’s 50 basis point rate cut last Wednesday,” said Bart Melek, a commodities strategist at TD Securities. “The Fed has signaled that it is not particularly concerned about inflation and will do its best to make sure unemployment is not a problem in the US.”
Milik said that the decline in employment rates would make the market believe that the US Federal Reserve may become more inclined towards cutting, which helps gold a lot, adding that the instability in the Middle East could also boost gold.
Among other precious metals, spot silver fell 0.5 percent to $30.97 an ounce. Platinum fell 1.1 percent to $966.55, and palladium fell 1.7 percent to $1,049.25.
