Gold rallies on safe-haven demand, set for best week in over a year
Gold prices breached the $2,700 threshold for the first time in two weeks on Friday, on track for their biggest weekly gain in over a year, as safe-haven demand outweighed dollar strength and lower expectations of a U.S. rate cut next month.
Spot gold was up 1% at $2,696.77 per ounce by 10:14 a.m. ET (1514 GMT), having earlier hit its highest since Nov. 8 at $2709.99. U.S. gold futures rose 0.9% to $2,698.90.
Bullion has gained over 5% this week, poised for its best weekly performance since last October, when the Middle East conflict first ignited, sparking a rally that pushed gold to multiple record highs.
Gold's surge this week has been propelled by the intensifying Russia-Ukraine crisis, lifting prices more than $173 from last Thursday's two-month low of $2536.71.
Bullion tends to shine during periods of geopolitical tension, economic risks, and in a low interest rate environment.
Gold’s rise continued on Friday even as the U.S. dollar (.DXY), hit a over 13-month high and bitcoin reached an all-time peak.
Expectations for a December rate cut from the U.S. Federal Reserve have diminished, with the likelihood now at 56%, a sharp drop from 82.5% just a week earlier.
Some Fed policymakers this week expressed concern that inflation progress may have stalled, advocating for caution, while others emphasized the need for continued rate cuts.
Spot silver rose 1.4% to $31.22 per ounce, palladium fell 1.5% to $1,014.25, while platinum gained 0.9% to $969.25. All three metals were on track for a weekly rise.
Source : Reuters
