Gold prices jumped on Monday in Asia after a strike against two Saudi Arabian oil facilities heightened tensions in the Middle East and boosted safe-haven demand.
Gold Futures for delivery on the Comex exchange gained 0.8% to $1,510.95a troy ounce by 12:38 AM ET (04:38 GMT).
An attack on Saudi Arabia’s oil facilities on Saturday knocked out more than 5% of global oil supply, intensifying tensions in the Middle East and sent oil prices surging as much as 20%.
U.S. President Donald Trump said on Sunday the U.S. was “locked and loaded” for a potential response to the attack while Secretary of State Mike Pompeo said in a tweet that Iran has launched an “unprecedented attack on the world’s energy supply.”
Looking ahead, critical policy decisions from central banks this week, including the Federal Reserve, are expected to dictate movement of the yellow metal.
The U.S. Federal Reserve is widely expected to lower interest rates again at the conclusion of its two day policy meeting on Wednesday. Thursday will bring policy meetings in Japan, the U.K., Norway and Switzerland.
Sino-U.S. trade developments also remained in the spotlight as junior U.S. and Chinese officials will reportedly meet this week ahead of planned talks between senior trade negotiators in October.