Gold steadied on Tuesday on caution ahead of the Federal Reserve’s policy meeting this week, but held on track for its biggest monthly rise since November last year as the Israel-Hamas war boosted safe-haven bets. Spot gold was unchanged at $1,996.11 per ounce by 0910 GMT, having spiked as high as $2,009.29 on Friday. U.S. gold futures were also steady at $2,005.80. Spot gold was at its lowest in almost eight months at $1,809.50 on Oct. 6, a day before Hamas’ attack on Israel. It is now on track for an 8% rise in October as investors bolted for safety amid the Middle East crisis.
“The precious metal is likely to remain supported as long as the ongoing conflict threatens to spill over into the broader region and further sour the global economic outlook,” said Exinity chief market analyst Han Tan. Gold slipped below key $2,000 levels this week “after Israel appeared to take a more measured approach to its ground invasion of Gaza”, said Tan, adding that “the precious metal had also been ripe for a technical pullback”.