Gold prices rise 1.0pc

Gold prices rose more than 1.0 per cent on Monday as the military conflict between Israeli forces and Palestinian Islamist group Hamas raised political uncertainty in the Middle East, prompting safe-haven buying of investments like bullion, reports Reuters.

Israel pounded the Palestinian enclave of Gaza on Sunday, killing hundreds of people in retaliation for one of the bloodiest attacks in its history when gunmen from Hamas rampaged through Israeli towns on Saturday.

Gold is used as a safe investment during times of political and financial uncertainty.

Spot gold jumped almost 1.0 per cent to $1,849.10 per ounce by 1132 GMT, having hit its highest level in a week. US gold futures also climbed 1.0 per cent to $1,863.40.

With investors looking for safe haven assets, gold has benefited at least in the short-term from the spike in geopolitical tensions, said UBS analyst Giovanni Staunovo.

The spiralling violence between Israel and Hamas threatens to start a major new war in the Middle East, sending oil prices higher and boosting the demand for safe-haven assets like US Treasuries, the dollar and the Japanese yen along with gold.

Among other metals, spot silver gained 0.2 per cent to $21.62 per ounce, platinum advanced 0.9 per cent to $884.88 and palladium fell 0.4 per cent to $1,153.91.