• Notification Date: 09-12-2024
• Notification No: N/A

Gold Prices Edge Up Amid Geopolitical Tensions in Syria and South Korea

Gold prices saw a little increase on Monday because of rising geopolitical tensions in Syria and South Korea, which triggered the demand for safe-haven assets like gold. Spot gold rose by 0.2%, thereby reaching $2,638.77 per ounce, while the futures of gold for February held steady at $2,660.41 per ounce.

The demand for gold was essentially driven by the improvements and developments in Syria, where rebel forces took control of the capital Damascus and ousted President Bashar al-Assad, who ran away to Russia. The situation created unpredictability and disturbances as markets expected the potential impacts of the change in regime after years of civil war. The rebels, supported by Turkey, have restrained themselves to the Sunni Islamic sect, which puts them in opposition to Iran. Meanwhile, reports suggest that Israel has entered Syrian territory, further escalating the situation.

In South Korea, the political uncertainty also charged the demand for gold. The country’s president, Yoon Suk Yeol, has faced a criminal investigation over a failed attempt to inflict martial law. However, Yoon survived an impeachment vote, as his political future remains uncertain with his own party suggesting that he may be forced to step down soon.

In spite of the demand for gold, its gains were restricted by the strength of the U.S. dollar, which firmed up ahead of essential data on inflation expected this week. Additionally, markets are still expecting that the U.S. Federal Reserve will cut the rates of interest by 0.25% next week, though extended decisions on rates remain unknown due to economic strength and continuing inflation.

In other metals, platinum held steady at $935.75 per ounce, but silver dropped by 0.5% to $31.44 per ounce. Copper, an industrial metal, fell by 0.2% due to weak inflation data from China, a major importer of copper, further signaling potential economic slowdowns in the country.