Safe-haven gold breaks $2,700 per ounce level as uncertainty looms
Gold breached the $2,700-per-ounce level on Friday for the first time ever, as U.S. election jitters and simmering Middle East tensions boosted safe-haven demand, while a looser monetary policy environment also added fuel to the rally.
Spot gold firmed 0.5% to $2,706.76 per ounce by 0220 GMT, adding nearly 2% so far in the week. U.S. gold futures rose 0.5% to $2,722.00.
“Gold has scoffed at a surging dollar and rallies at every chance it gets. It’s just a bull market that shows no signs of exhaustion,” said Tai Wong, a New York-based independent metals trader.
U.S. economic data released overnight pointed to a strengthening economy, which boosted the U.S. dollar and Treasury yields. But traders still see a 90% chance of a Federal Reserve rate cut in November.
The European Central Bank cut interest rates for the third time this year as the euro zone economy sags.
Gold is expected to trade within the range of $2,500-$2,800 in the coming months, as prices receive support from Fed’s rate cuts and high levels of geopolitical tension, BMI analysts said.
Hezbollah said it will escalate war with Israel after the killing of Hamas leader Yahya Sinwar.
Elsewhere, with less than three weeks remaining to cast votes this U.S. presidential election, Democratic Vice President Kamala Harris and Republican former President Donald Trump are stretching for the support of every last voter.
Lower rates increase the non-yielding bullion’s appeal, which is considered a safe investment during times of turmoil.
Spot silver rose 0.5% to $31.92 per ounce and was headed for a weekly gain.
Platinum added 0.5% to $996.85 and palladium increased 0.7% to $1,049.25.
Elsewhere, data showed that top metals consumer China’s economy expanded 4.6% in the third quarter from a year earlier, slightly beating analysts’ expectations.(Cay)
Source: CNBC
