Gold prices gain ground as US dollar slips

Gold prices gained ground today, Feb. 19, amid increasing demand for safe havens due to the decline in the US dollar and the escalation of tensions in the Middle East.

Bullion for April delivery climbed by 0.41% to $2,032.40 per ounce at 11:20 am Makkah time, with spot prices also up 0.34% to $2,020.50 an ounce — exceeding their highest level since Feb. 13.

Meanwhile, silver futures for March delivery plummeted by 1.11% to $23.22 per ounce, in tandem with a 0.10% slump in platinum spot prices to $908.73 an ounce.

“Given recent geopolitical developments that call for tensions to drag on for longer, the yellow metal is finding some renewed traction on safe-haven flows,” said IG market strategist Yeap Jun Rong, Reuters reported.

Focus is now on the minutes from the Federal Reserve’s January policy meeting, due on Feb. 21, for more clues on when the US central bank could begin cutting interest rates.

The US dollar index, which gauges the greenback's strength against a basket of six currencies, fell slightly by 0.11% to 104.18 points.