Gold extends gains as Middle East turmoil lifts appeal


Gold prices climbed for a third straight session on Monday, as bullion held onto safe-haven gains from elevated tensions in the Middle East and after U.S. producer prices data last week renewed bets for an early rate cut by the Federal Reserve.

  • * Spot gold was up 0.3% at $2,054.73 per ounce, as of 0228 GMT, after marking its biggest daily gain since Dec. 12 on Friday.

    * U.S. gold futures rose 0.4% to $2,058.70. * The war between Israel and Hamas reached its 100th day as Israel continued its fierce offensive, while Houthi militia threatening a response to U.S. air strikes on Yemen kept risks of escalations in the Middle East elevated.

    * Gold, historically seen as a safe store of wealth, tends to gain during times of political and economical uncertainty.

    * Bets for a Fed cut in March gathered some steam after data on Friday showed U.S. producer prices unexpectedly fell in December, sending Treasury yields sliding in response.


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