Investing.com – Gold prices rose on Monday as geopolitical turmoil in Syria and South Korea helped boost demand for safe havens.
At 2:23 PM ET (19:23 GMT), the price rose 1% to $2,660.53 per ounce, while the February expiring price rose 0.9% to $2,660.53 per ounce.
The unrest in Syria and South Korea stimulates the demand for gold
Demand for gold was largely fueled by increased demand for safe havens after rebels took control of the Syrian capital Damascus and ousted President Bashar al-Assad, who fled to Russia.
The markets were curious about what exactly the regime change after a protracted civil war would entail. The rebels were partially backed by Turkey and maintain ties with the Sunni Islamist sect, bringing them into conflict with Iran.
Other reports said Israel had also entered Syrian territory.
In South Korea, the leadership crisis worsened this weekend when prosecutors named President Yoon Suk Yeol in a criminal investigation into a failed attempt to impose martial law last week.
Yoon survived an impeachment vote this weekend. But the leader of his own party said the president would be sidelined and ultimately forced to resign.
In another positive development, China’s central bank resumed gold purchases for its reserves in November, ending a six-month hiatus and providing additional support to 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 purchasing, expected monetary policy easing and ongoing geopolitical tensions indicate a well-supported near-term gold price outlook.
Other precious metals also rose on Monday. rose 1.9% to $951.55 per ounce, while the price rose 2.8% to $32.477 per ounce.
Copper helped China’s stimulus optimism
Among industrial metals, copper prices rebounded on Monday despite softer-than-expected Chinese inflation data, which heralded more signs of economic tension in top importer China.
The benchmark on the London Metal Exchange rose 1.5% to $9,234.00 a tonne, while February rose 1.8% to $4.2687 a pound.
China’s consumer inflation contracted more than expected in November, while producer inflation contracted for the 25th straight month, amid limited signs of improving economic conditions in the province.
However, sentiment was boosted when China pledged to implement more proactive fiscal stimulus and moderately looser monetary policy in 2025, according to an official readout of a key policy meeting held by the Political Bureau of the Communist Party Central Committee of China.
(Peter Nurse, Ambar Warrick contributed to this article.)
