Gold manages to rise in the first session of the week.

Gold prices managed to record weekly gains by the end of the last week, which ended on October 11. The precious metal continued its upward movements in the first trading sessions of the week on Monday, amidst escalating geopolitical tensions in various parts of the world.

In this regard, gold found strong support, benefiting from its role as a safe haven during times of turmoil and geopolitical fluctuations. This was particularly notable as China conducted military drills across the Taiwan Strait and in the northern, southern, and eastern regions of the island, in an attempt to threaten any separatist actions within Taiwan.

In response, Taiwan's Defense Ministry stated that it had dispatched appropriate forces to counter China's actions in order to protect freedom, democracy, and defend Taiwan's sovereignty.

In the Middle East, conflicts have intensified, particularly as Hezbollah launched artillery shells and rockets at Israeli forces during their attempts to cross into southern Lebanon, raising concerns about the continuation of conflict in the Middle East, which may expand over a wider area and for a longer duration.

On the other hand, gold also faced downward pressures concurrently, as bets shifted regarding the Federal Reserve's actions and future monetary policy trajectory; with the data released at the end of last week showing an increase in the U.S. Producer Price Index (PPI) to 1.8% in September, higher than the expectations that forecasted a growth of 1.6%.

Additionally, the core U.S. Producer Price Index experienced an annual growth of 2.8% in September, surpassing market expectations that projected a growth of approximately 2.7% for the U.S. PPI.

These data fueled market expectations that inflation might see a rise again, complicating the path of interest rate cuts in the United States and making it appear less aggressive than previously anticipated. This could drive the dollar higher and, consequently, lead to a decrease in gold prices, as demand for dollar-denominated gold typically declines when the greenback strengthens.

Current Gold Prices

In today's trading, spot gold prices rose by about 0.21% to $2,662.60 per ounce. Simultaneously, gold futures increased by approximately 0.10%, recording $2,678.90 per ounce.