Last Friday, spot gold hit a historic high of $2,431.29 per troy ounce, supported by safe haven buying, and investors are closely monitoring the development of the Middle East situation.

KCM Trade Chief Market Analyst Tim Watt said, "Given geopolitical risks and the possibility of the Federal Reserve cutting interest rates in the second half of this year, gold remains highly favored as a financial asset."

"In many ways, gold is becoming a 'universal asset' as it can rise in different market dynamics in 2024."

Although recent US Consumer Price Index (CPI) inflation data has prompted investors to reduce their bets that the Federal Reserve will start cutting interest rates in June, it is still expected to have two rate cuts this year.

Lowering interest rates will reduce the opportunity cost of holding gold, as gold does not pay interest.

As of 9:13 GMT on Monday, spot gold rose 0.22% to $2,349.39 per troy ounce.

The gold futures for June delivery fell 0.37% to $2,365.35 per troy ounce.

In addition, silver futures for May delivery rose 0.02% to $28.335 per troy ounce.

"We expect gold to trade around $2,500 per ounce by the end of 2024, while silver prices will exceed $31 per ounce," said an analyst from ANZ Bank's research department in a client memo.

The US dollar index reflects the strength of the US dollar relative to the other six major currencies, falling 0.11% to 105.897 on Monday.