Gold Set for Strong Weekly Performance
Gold climbed $2,680 per ounce on Friday, rising for the fifth straight run, and on track to gain nearly 5% this week, as investors turned to safe-haven assets amid increasing geopolitical risks.
Earlier this week, Ukraine launched its second Western-supplied missile into Russia, while Kyiv’s air force reported that Russia fired its first intercontinental ballistic missile at Ukraine on Thursday in retaliation.
Meanwhile, markets continued to assess the Federal Reserve’s monetary policy outlook after US jobless claims unexpectedly fell, adding to speculation about a slower pace of Fed rate cuts.
Traders also weighed remarks from Fed Bank of Chicago President Goolsbee, who suggested that interest rates could move "a fair bit lower" and expressed confidence that inflation is easing toward the target. Most of the market still expects a 25bps rate cut in December, which would lower the opportunity cost of holding non-interest-bearing gold.
Source: Trading Economics
