Gold futures rose on safe-haven demand and central bank buying. Futures rose 0.5% to $2,699.30 per troy ounce.
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Ricardo Evangelista, senior analyst at ActiveTrades, said the precious metal has been supported by rising geopolitical tensions, strengthening its appeal as a safe-haven asset.
China’s central bank has resumed gold purchases after a six-month hiatus, providing further support, Evangelista writes. Expectations of a U.S. interest rate cut by the Federal Reserve later this month have strengthened among traders, boosting the appeal of non-interest-bearing bullion and completing a trio of positive factors, Evangelista writes.
The U.S. Consumer Price Index data to be released on Wednesday will play a key role in further shaping gold prices – a pick-up in consumer prices could put pressure on gold, while weaker-than-expected data could support prices.
