Gold traded near $2,000 an ounce — after Friday breaching the key level for the first time since May — as Israel’s ground invasion of Gaza appears to be more cautious than it initially vowed.
Bullion slipped 0.2% after jumping 1.1% on Friday. Tel Aviv sent troops and tanks into the northern Gaza Strip in what it calls the second and longer phase of its war against Hamas and is taking a day-by-day approach. That eased concerns over a massive ground invasion.
Gold has stood out as one of the biggest winners since Hamas attacked Israel on Oct. 7, rising more than 9% as demand for haven assets increased. It is likely to continue benefiting should tensions escalate, alongside the Swiss franc and short-dated government bonds. Traders will this week also monitor major central bank decisions, including the US Federal Reserve’s meeting on Thursday, for the outlook on interest rates.
Spot gold declined to $2,003.16 an ounce as of 7:19 a.m. in Singapore. The Bloomberg Dollar Spot Index was flat. Silver edged lower, while palladium and platinum were steady.
