Gold trades at highest since mid-April as busy week kicks off

Investing.com - Gold prices rose to their highest level since mid-April in North American trade on Monday, as market players looked ahead to potentially market-moving events later in the week.

Comex gold futures rose to a session peak of $1,286.00 a troy ounce, a level not seen since April 21. It was last at $1,284.99 by 8:30AM ET (12305GMT), up $.4.80, or about 0.4%. Meanwhile, spot gold was at $1,282.51.

Also on the Comex, silver futures tacked on 2.5 cents, or about 0.2%, to $17.54 a troy ounce. It rose to $17.59 in overnight trade, a level not seen since April 26.

Europe is likely to set the tone for global financial markets this week, with the European Central Bank policy meeting and British general election on investors' minds.

Meanwhile, in the U.S., market players will pay close attention to former FBI director James Comey's testimony before the Senate Intelligence Committee, in a hearing that could add to difficulties facing President Donald Trump.

Gold drew support from fresh geopolitical tensions in the Middle East, where Saudi Arabia, the United Arab Emirates, Bahrain and Egypt severed their ties with Qatar on Monday, accusing it of supporting terrorism, in an unprecedented breach between the most powerful members of the Gulf Cooperation Council.

Elsewhere, traders reacted to Saturday’s terror attack in London - the third attack in Britain in recent months - which left seven dead and scores injured after a van mowed down pedestrians on London Bridge.

On Sunday, U.K. police said they arrested 12 people in east London in connection with the attack. Islamic State has claimed responsibility.

The attack came days ahead of Thursday's U.K. election, in which polls show British Prime Minister Theresa May's lead over the opposition Labour Party has narrowed but is still intact.

Gold is often seen as an alternative currency in times of global economic uncertainty and a refuge from financial risk.

Meanwhile, market players will focus on more U.S. economic data on Monday for further signs of the Federal Reserve's likely rate hike trajectory through the end of the year.

Monday will see services PMI data for May released at 9:45AM ET (1345GMT), while ISM non-manufacturing data for May and factory orders for April are both scheduled for 10:00AM ET (1400GMT).

Data on Friday showed that U.S. job growth slowed in May and employment gains in the prior two months were not as strong as previously reported, suggesting the labor market was losing momentum despite the unemployment rate falling to a 16-year low.

Most analysts believe the poor data will not stop the Fed from raising interest rates at its meeting later this month, but traders now expect a more dovish path in the second half of the year.

Elsewhere in metals trading, platinum ticked up 0.5% to $958.00, while palladium added 0.4% to $838.65 an ounce.

Copper futures lost 1.8 cents to $2.556 a pound.