Gold prices are around $2,000 and market attention focuses on Fed meeting

supported by safe haven demand amid the Middle East conflict, as market participants awaited this week’s Federal Reserve monetary policy meeting.

Spot gold was down 0.3 at $1,999.69 an ounce by 1643 GMT. US gold futures rose 0.6% to $2,009.40.

“The Middle East conflict is keeping a floor under the gold and silver markets. I remain bullish on gold, the conflict will get worse before it gets better, gold may reach all-time highs in the short termsaid Jim Wyckoff, senior analyst at Kitco Metals.

The spot gold price reached $2,009.29 per ounce on Fridaysurpassing the key psychological level of $2,000 for the first time since mid-May.

Gaza Palestinians Report Fierce Airstrikes and artillery fire early Monday, as Israeli troops, backed by tanks, pressed on the enclave with a ground assault.

Market participants now look ahead to the US central bank’s monetary policy decision, scheduled for Wednesday. Although the Fed is expected to keep interest rates unchanged, attention will focus on comments from Chairman Jerome Powell.

Inflationary pressures will dog the global economy next year, a Reuters poll finds, suggesting Interest rates will also stay higher for longer.

Among other precious metals, Spot silver rose 0.9% to $23.35platinum added 2.9% to $930.24 and palladium gained 0.7% to $1,129.56.