Closing the trading session on October 20, each ounce of world gold for immediate delivery increased by 7 USD to 1,981 USD. During the session, the price at one point touched 1,997 USD - the highest since May.

Precious metals are more expensive because investors fear the conflict in the Middle East is escalating, thus looking for shelter tools. This week, gold prices increased by 2.5%, recording the second consecutive weekly increase. Since the conflict broke out, prices have increased by nearly $160 an ounce.

On October 20, the Israeli army announced that it was launching retaliatory raids on the Gaza Strip with a frequency "unprecedented in decades". Israel also attacked a mosque in the Jabaliya area of ​​Gaza City, suspected of storing property and weapons of Hamas forces.

"People are rushing to buy gold to hedge against political risks. If tensions in the Middle East escalate, gold prices will surpass the $2,000 mark," said Phillip Streible - market strategist at Blue Line Futures.

From a technical perspective, Ole Hansen - Director of Commodity Strategy at Saxo Bank believes that gold could reach the resistance level of 2,075 USD - the peak reached in 2020.

Investors yesterday also analyzed the speech of US Federal Reserve Chairman Jerome Powell. Accordingly, he left open the possibility of continuing to raise interest rates, but also emphasized that new risks have arisen and the Fed needs to act cautiously. Gold prices often move inversely with interest rates, because this instrument does not pay fixed interest.

On the physical market, gold traders in India - the world's major consumer market - were forced to sharply reduce domestic prices. The reason is that demand is slowing down despite Dussehra - a major festival in the country - approaching.

Other precious metals, such as silver and platinum, also increased in price yesterday. Silver rose 1.4% to $23.35 an ounce. Platinum rose 0.7% to $896 an ounce. Both recorded their second consecutive week of price increases.

Ha Thu (according to Reuters)