Gold prices rise as demand for safe havens increase

Gold prices rose on Monday, coinciding with the fall in the yield on US Treasury bonds, and after the metal fell 6% last week.

The 30-year US Treasury yield fell below 2% for the first time since February today, June 21, coinciding with the selling wave in the stock market and the demand for safe havens.

Meanwhile, gold recorded the largest weekly losses since March 2020 last week, due to the statements of the Federal Reserve, which announced that it might start raising interest rates in 2023, before the previously announced date in 2024.

Spot gold rose by 0.8% to hit $1,777.97 per ounce, and gold futures contracts for August increased 0.5% to reach $1,778.60 per ounce, by 09:35am Makkah time.

Elsewhere, silver rose 0.3% to $26.05 per ounce, palladium gained 0.9% to hit $2,492 per ounce while platinum fell 0.2% to reach $1,041.68 per ounce.

The US dollar index - which measures the performance of the US currency against a basket of six currencies – settled at 92.206 points.