Gold extends gains as Middle East turmoil lifts appeal
Gold prices climbed for a third straight session on Monday, as bullion held onto safe-haven gains from elevated tensions in the Middle East and after U.S. producer prices data last week renewed bets for an early rate cut by the Federal Reserve.
FUNDAMENTALS
* Spot gold was up 0.3% at $2,054.73 per ounce, as of 0228 GMT, after marking its biggest daily gain since Dec. 12 on Friday.
* U.S.
gold futures rose 0.4% to $2,058.70. * The war between Israel and Hamas reached its 100th day as Israel continued its fierce offensive, while Houthi militia threatening a response to U.S. air strikes on Yemen kept risks of escalations in the Middle East elevated.
* Gold, historically seen as a safe store of wealth, tends to gain during times of political and economical uncertainty.
* Bets for a Fed cut in March gathered some steam after data on Friday showed U.S.
producer prices unexpectedly fell in December, sending Treasury yields sliding in response.
* The U.S. Fed is expected to hold its policy rate steady at the Jan. 30-31 meeting.
