The cost of gold last week rose by more than 5%, showing the best dynamics since March. The increase in demand contributed to the armed clash between Israel and the group Hamas, reports profinance.ru with reference to Reuters.

According to Edward Moya, a senior analyst at OANDA, the escalation of tension in the Middle East has prompted investors to switch to safe assets. According to the expert, in case of deterioration of the situation in the region, gold prices are likely to return to $2000 per troy ounce this year.

An additional factor that stimulated the growth of prices for precious metal was the changed expectations regarding further monetary policy of the Federal Reserve System. As David Meger, head of precious metals trading at High Ridge Futures, noted, players are now inclined to believe that the regulator will refrain from raising rates at the next meeting scheduled for November. CME Fedwatch estimates the probability of such a pause at 69%.