Gold rallies on safe-haven demand, set for best week in nearly 2 years
Gold prices breached the $2,700 threshold for the first time in over two weeks on Friday, on track for their biggest weekly gain in nearly two years, as safe-haven demand outweighed dollar strength and lower expectations of a U.S. rate cut next month.
Spot gold surged 1.5% at $2,709.24 per ounce by 01:51 p.m. ET (1851 GMT), marking its highest since Nov.6. U.S. gold futures settled 1.4% higher at $2,712.20.
Bullion has gained over 5.7% this week, poised for its best weekly performance since March 2023, when a wave of banking crises roiled global markets and boosted demand for safer assets.
Gold's surge this week has been propelled by the intensifying Russia-Ukraine crisis, lifting prices more than $170 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, hit a two-year 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 53%, 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 1.5% to $31.24 per ounce, palladium fell 1.4% to $1,015.00, while platinum gained 0.6% to $964.36. All three metals were on track for a weekly rise.
Source : Reuters
