Concerns about complacency of investors among U.S. Federal Reserve policy makers emerged with the minutes of June's two days of meetings last month. Thus far this year, gold futures have climbed about 12 percent in value, a notable development considering the yellowish metal lost value last year for the first time in 12 years.
The minutes also indicated the Fed has no clear plans to push up borrowing costs in the near term.
"We might see that part of the world shift into precious metals," head of currency and metal trading Bernard Sin with refiner MKS SA in Geneva, Switzerland told the news outlet on Thursday. "The geopolitical situation is very tense, particularly in the Middle East."
Stimulus to close in October
Minutes from the mid-June meeting of the Federal Open Market Committee noted the Fed intends to close the monthly bond-buying program in October. For the past five meetings, the body has slashed monthly purchases by $10 billion.
What started at $85 billion-worth of debt purchases per month has dropped to $35 billion as of last month's meetings.
The Fed originally aimed to close the program by the end of this year. But the minutes make a pointed reference to the program's closure in October.
India leaves tariffs unchanged
The yellowish metal also rose as a result of India deciding to leave import tariffs at the all-time high of 10 percent, Reuters reports.
As one of the globe's top two consumers of the precious metal, India made the decision on Thursday. The announcement came amid projections for a reduction, which never came to fruition.
Among the rationale as to why changes were expected is the administration of new Prime Minister Narendra Modi had indicated last year it intended to reduce restrictions on imports. But that was not the case following Thursday's meeting regarding the fiscal budget.
One analyst said a variety of factors were proving to be beneficial for the performance of the yellowish metal during the Thursday trade session.
"I don't think it's one of those days when there is one single massively positive factor for gold: instead of the many different factors that affect gold prices in some days it just happens that they all turn out to be positive,'' analyst Matthew Turner with Macquarrie told Reuters on Thursday. "Today we have the Fed yesterday was a bit dovish, share markets are falling, geopolitics are messy.''
Eastern Mediterranean strife intensifies
The tumult in the Eastern Mediterranean between Israel and Palestinian militants has become so intense that the top official of the United Nations has become involved, The Associated Press reports.
Secretary-General Ban Ki-moon said now is an opportune time for both sides to do all that they can in order to prevent an escalation of the feud to a war.
Both sides should exert top efforts to demonstrate their diplomacy and statesmanship, which will lead them to commit to an immediate ceasefire.
The leader made the statement during an emergency meeting of the body's Security Council on Thursday, noting how detrimental a ground war will be to the Gaza Strip and the region.
Hamas and other militant groups in operation in the Gaza Strip should cease discharging rockets and other weaponry into Israel.
The secretary specifically pointed to Hamas and Islamic Jihad, both of which operate in the Gaza Strip. Yet he also directly addressed Israel and its effort.
"The excessive use of force and endangering of civilian lives are also intolerable," the UN leader said, according to The Associated Press.
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