Gold Set for Strong Weekly Gain on Safe Haven Demand
Gold held near a record for its eighth straight weekly gain as demand for safe havens surged as geopolitical and trade tensions and concerns about the economic outlook weighed.
Bullion traded near $2,940 an ounce, up 2% this week, as traders digested disappointing results from Walmart Inc., the world’s largest retailer. The company’s chief financial officer acknowledged “uncertainties related to consumer behavior and global economic and geopolitical conditions.” That followed retail sales data that signaled a sudden pullback by consumers.
The precious metal hit a fresh peak on Thursday amid concerns that President Donald Trump could withdraw American support for Ukraine. The U.S. leader is preparing to meet with Russian President Vladimir Putin to negotiate a deal to end the war, a move that threatens to alienate Kyiv and its allies in Europe.
Gold has hit back-to-back records this year, having risen 27% through 2024, amid growing concerns about Trump’s increasingly disruptive trade and geopolitical agenda. Goldman Sachs Group Inc. this week raised its year-end target for the metal to $3,100 an ounce, saying central bank purchases would be a key driver. At the same time, holdings in bullion-backed exchange-traded funds have swelled to the highest in more than a year, according to a Bloomberg tally.
Meanwhile, investors are assessing comments from U.S. Treasury Secretary Scott Bessent, who dismissed speculation that the government might reassess its bullion holdings. Bloomberg reported last week that the idea is not being seriously considered among Trump’s top economic advisers.
Spot gold rose 0.1% to $2,939.52 an ounce as of 8:44 a.m. in Singapore. The Bloomberg Dollar Spot Index was flat, heading for its fifth weekly loss in six weeks. Silver traded just below $33 an ounce, up more than 2% this week, as palladium and platinum were little changed.
Source: Bloomberg
