Gold was up by more than 1 percent in the previous session, extending its gains as geopolitical risks encouraged investors to invest in safe-haven assets after the metal’s third consecutive weekly decline. The U.S. dollar was found lower against a basket of major currencies, which also pushed gold prices into better positions.
David Meager, the director of metals trading at high Ridge Futures in Chicago states that “Geopolitical issues in Saudi Arabia over the weekend and into today drove the price of gold up,”, and even citing investors who bought into gold as a safe haven.
Spot Gold was up by 1 percent and was seen trading at $1,281.46 per ounce while U.S. gold futures for December delivery was pinned at $12.40, also a 1 percent increase being sold at $1,281.60 per ounce.
The dollar dipped on Monday after its biggest weekly rise this year, while Germany’s benchmark bond yield was pinned in near two-month low as investors awaited clues on the European Central Bank’s asset purchase plans.
Speculators who are backing out from gold drove the gold-silver ratio to 74.14, its lowest since early June, said Jeffrey Christian, managing partner of CPM group New York.
Among other precious metals, Silver was up by 2.4 percent and was at $17.20 per ounce, platinum with an increase of 1.4 percent and was trading at $931.75 and palladium was upby 0.2 percent at $998.50 per ounce.