Gold Rises to Two-Month High at $1,323.80 per Ounce

Gold rose 0.5 percent or $6.62 to $1,323.80 an ounce on Tuesday, according to Reuters. The metal hit a peak of $1,325.70 during the trading day, representing a two-month high. Investors are drawn to gold as a safe haven as tensions in Iraq are escalating and the US Federal Reserve is not committed to raising interest rates. These factors have sent equities and the dollar spiraling.

“There are still willing buyers today as there are shorts left, and risk aversion sees fresh inflows,” VTB Capital analyst Andrey Kryuchenkov told Reuters. “The greenback is slightly weaker today, while European equities are extending losses from yesterday. Low volumes and technical trading will prevail this week since there is little else aside from Iraq to drive the market, with hardly any physical flows at the moment.”

US gold futures for August delivery rose $6.60 to trade at $1,325 an ounce.