Gold rises as Israel-Hamas conflict escalates

Gold rises as Israel-Hamas conflict escalates
The commodity has also rocketed as investors seek to guard against rising inflation -- with many central banks injecting immense amounts of liquidity into the financial system to counter virus fallout/COURTESY

CHICAGO, Oct. 18 (Xinhua) — Gold futures on the COMEX division of the New York Mercantile Exchange rose on Wednesday as investors reacted to geopolitical tension.

The most active gold contract for December delivery rose 32.60 U.S. dollars, or 1.68 percent, to close at 1,968.30 dollars per ounce.

An explosion at a Gaza City hospital killed about 500 Palestinians on Tuesday. Geopolitical tension in the Middle East continued to drive investors to safe haven gold.

Economic data released Wednesday were mixed.

The U.S. Commerce Department reported that construction of new U.S. homes rebounded 7 percent in September to an annual pace of 1.36 million units, after a sharp 1.5-percent drop in the prior month.

The U.S. Commerce Department further reported that U.S. building permits, a sign of future construction, fell 4.4 percent to a 1.47 million rate. Economists had expected a 6-percent decline to 1.45 million.

Silver for December delivery rose 7.50 cents, or 0.33 percent, to close at 23.099 dollars per ounce. Platinum for January delivery fell 11.90 dollars, or 1.31 percent, to close at 894.30 dollars per ounce.

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