Singapore: Gold was trading steady near its highest in two months on Monday as escalating violence in Iraq and geopolitical tensions supported the metal's safe-haven appeal.
Fundamentals
Spot gold was little changed at $1,313.36 an ounce, not too far from a two-month high of $1,321.90 hit on Friday. Iran's supreme leader accused the United States on Sunday of trying to retake control of Iraq by exploiting sectarian rivalries, as Sunni insurgents drove towards Baghdad from new strongholds along the Syrian border.
Gold is considered an investment-hedge, and is sought after especially during times of geopolitical and financial uncertainty. The metal was also supported by fighting in Ukraine between Ukrainian and pro-Moscow separatist forces, further straining a unilateral ceasefire declared by Ukraine as Russian President Vladimir Putin pressed Kiev to talk to the rebels.
Hedge funds and money managers increased their bullish bets in gold futures and options in the week to June 17 as bullion prices climbed, according to data from the Commodity Futures Trading Commission on Friday. Russia's gold reserves rose to 34.7 million troy ounces in May from 34.4 million troy ounces in April, the central bank said on its website on Friday.
