Gold prices soared over 1% on Monday as the danger of a larger Middle East conflict increased due to violent skirmishes between Israeli and Hamas forces that took place during the weekend and increased demand for safe-haven commodities like bullion.

Spot gold climbed 1% to $1,850.87 per ounce meanwhile gold futures advanced by1.1% to $1,865.20 per ounce.

Israel witnessed its worst day in decades on Saturday as Hamas militants rampaged across Israeli cities. On Sunday, Israeli aircraft bombarded Gaza, killing hundreds of people on both sides, according to reports.

The Middle East is on the verge of a huge new conflict as a result of the spiraling bloodshed, which has driven up oil prices and Treasury yields while falling U.S. stock futures.

Although wage growth is slowing, the United States' employment climbed in September for the first time in eight months as hiring increased broadly. This indicates that the labor market is still strong, which could give Fed justification to hike interest rates once again.