Gold Jumps on Heightened Geopolitical Risks

 Gold Jumps on Heightened Geopolitical Risks

Gold jumped 1% to around $1,850 an ounce on Monday, extending gains from the previous session as the Israel-Hamas conflict extended into a third day, raising geopolitical risks in the Middle East. Palestinian militant group Hamas launched a surprise attack on Israel on Saturday, spurring a series of retaliations from the latter and resulting to a combined death toll of more than 1,000 from both sides.

Investors were also wary of a wider conflict amid allegations of Iranian involvement in the attacks.

On Friday, the metal gained 0.7% amid a pullback in dollar, even as a stronger-than-expected US jobs report fanned rate concerns.

Higher interest rates raise the opportunity cost of holding non-yielding bullion and make it less attractive to investors, and vice versa.