Investing.com - Gold prices rose Monday as geopolitical turmoil in Syria and South Korea helped spur some safe haven demand.
At 2:23 p.m. ET (19:23 GMT), spot gold rose 1% to $2,660.53 an ounce, while gold futures expiring in February gained 0.9% to $2,660.53 an ounce.
Syria, South Korea turmoil spurs gold demand
Demand for gold was fueled largely by increased haven demand, after rebel forces took over Syria’s capital Damascus and ousted President Bashar al-Assad, who fled to Russia.
Markets were waiting to see just what the regime change could entail after a protracted civil war. The rebel forces were partially backed by Turkey and hold ties to the Sunni Islamic sect, putting them at odds with Iran.
Other reports said Israel had also entered Syrian territory.
In South Korea, a leadership crisis deepened over the weekend as prosecutors named President Yoon Suk Yeol in a criminal investigation over a failed attempt to impose martial law last week.
Yoon survived an impeachment vote over the weekend. But the leader of his own party said the president would be sidelined and forced to eventually step down.
In another positive development, China’s central bank resumed gold purchases for its reserves in November, ending a six-month pause and providing additional support for the yellow metal.
This comes amid a broader trend of strong central bank demand for gold over the past two years. The combination of robust central bank buying, anticipated monetary policy easing, and ongoing geopolitical tensions suggests a well-supported outlook for gold prices in the near term.
Other precious metals also gained Monday. Platinum futures rose 1.9% to $951.55 an ounce, while silver futures gained 2.8% to $32.477 an ounce.
Copper helped Chinese stimulus optimism
Among industrial metals, copper prices bounced on Monday despite softer-than-expected Chinese inflation data, which heralded more signs of economic strain in top importer China.
Benchmark copper futures on the London Metal Exchange rose 1.5% to $9,234.00 a ton, while February copper futures gained 1.8% to $4.2687 a pound.
Chinese consumer inflation shrank more than expected in November, while producer inflation shrank for a 25th consecutive month, amid limited signs of improving economic conditions in the county.
However, sentiment was boosted when China pledged to implement more proactive fiscal stimulus measures and adopt moderately looser monetary policies in 2025, as per official readout from a key policy meeting held by the Political Bureau of the Communist Party of China Central Committee.
(Peter Nurse, Ambar Warrick contributed to this article.)