Gold prices at two-week high: Critical level surpassed ahead of Fed

Gold climbed to its highest level in nearly two weeks on Wednesday, supported by technical buying. Investors in the markets have turned their focus to signals regarding the interest rate path that will emerge from next week's US Federal Reserve (Fed) meeting.

Spot gold rose 0.9% to $4,113.73 per ounce. Thus, prices saw their highest level since July 10. US gold futures for August delivery also rose 1.1% to $4,119.10.

One of the factors supporting safe-haven demand in global markets has been the tension in the Middle East. Following threats from the Iran-backed Houthis in Yemen, two oil tankers carrying Saudi crude to Asia changed their routes in the Red Sea on Tuesday.

As the expansion of conflicts in the region increases concerns regarding maritime transport at critical energy transit points, oil prices also rose by more than 1%, trading at their highest levels in about six weeks.

On the diplomatic front, Iranian Interior Minister Eskandar Momeni visited Pakistan, which has taken on a mediating role, and asked Islamabad to continue its diplomatic initiatives.

Gains were also observed in other precious metals. Spot silver rose 1.8% to $59.82, platinum rose 1.6% to $1,655.61, and palladium gained 1.6% to $1,302.25.

News Source: 12punto