Gold prices soar; silver exceeds $27/ounce

Gold prices maintained an uptrend today, May 6, with investors in wary of the continued geopolitical turmoil in the Middle East, alongside mounting expectations for the Federal Reserve to cut interest rates next September.

Bullion for June delivery jumped 0.58%, or $13.5, to $2,322.10 an ounce at 09:02 am Makkah time, with spot prices also up 0.45% to $2,312.19 per ounce.

Likewise, silver futures for July delivery skyrocketed 1.89% to $27.20 an ounce, while platinum spot prices held ground at $957 per ounce.

"Investors will look at the political situation in the Middle East and how the ongoing negotiations for a ceasefire play out. If the hopes of a truce become lesser, gold will gain," said Kelvin Wong, a senior market analyst for Asia Pacific at OANDA, Reuters reported.

Investors are pricing in a 67% chance that the Fed will cut interest rates at the next September meeting, according to the CME FedWatch Tool, after official data issued at the end of last week showed a slowdown in the pace of US employment in April.

Data issued last weekend showed that the US economy added 175,000 jobs in April, compared to 315,000 jobs in the revised March reading, against expectations of 240,000 jobs. This is besides a rise in the US unemployment rate to 3.9% from 3.8% during the same period.