Gold prices rose in Asian markets on Monday, supported by growing concerns over political unrest in Syria and South Korea. These geopolitical worries boosted demand for gold as a safe haven, despite the strength of the US dollar. The spot price of gold increased by 0.2%, reaching $2,638.77 per ounce, while gold futures settled at $2,660.41 per ounce.
The demand for gold increased amid these developments, raising questions about the Middle East, and in South Korea, the political crisis deepened, prompting investors to hedge through gold.
Despite this growing demand, gold’s gains remained limited due to the strong performance of the dollar, which benefited from upcoming key inflation data.
Although bets on a 25-basis-point rate cut by the Federal Reserve next week continue, the central bank’s long-term policies remain uncertain, which could lead the Fed to adopt a more cautious approach to monetary easing in 2025.
As for other metals, most showed weak performance. Platinum prices held steady at $935.75 per ounce, while silver prices dropped 0.5% to $31.44 per ounce.
In industrial metals, copper came under pressure due to weaker-than-expected Chinese inflation data. Copper prices on the London Metal Exchange fell 0.2% to $9,082 per ton, while February copper futures dropped 0.3% to $4.18 per pound.
Data showed a larger-than-expected contraction in Chinese consumer prices for November, along with continued producer price deflation for the 25th consecutive month. Despite stimulus measures from Beijing, there were no clear signs of improvement in China’s economy, putting pressure on global commodity markets.
