Safe-haven gold gains on global uncertainty, weaker dollar
Gold prices rose on Friday as a weaker U.S. dollar and ongoing geopolitical and economic uncertainty boosted demand for the safe-haven metal, while platinum prices eased after reaching their highest level since 2014.
Spot gold rose 0.5% to $3,353.80 per ounce, as of 0947 a.m. EDT (13:47 GMT), after falling 1.1% in the previous session.
U.S. gold futures were also up 0.5% to $3,360.50.
"In the precious metals space, there are gains across the board, courtesy of a weaker dollar," said Marex analyst Edward Meir.
"We do not see much of a bearish case in gold over the medium-term given all that is going on, including out-of-control U.S. spending, lingering trade tensions, inflation uncertainty and the constant Fed bashing thrown in lately for good measure."
The dollar was down 0.5% for the day. A weaker dollar tends to make gold cheaper for buyers holding other currencies.
Earlier this week, Trump said he was not planning to fire Federal Reserve Chair Jerome Powell. Still, he kept the door open to the possibility and renewed his criticism of the central bank chief for not lowering interest rates.
Market participants are anticipating two U.S. rate cuts by the end of this year, totalling 50 basis points.
Gold thrives during economic uncertainty, and lower interest rates boost investor demand as it is a non-yielding asset.
On the tariff front, Indonesia is still negotiating the details of its recently reached trade deal with the United States. Meanwhile, U.S. Treasury Secretary Janet Yellen told the Japanese Prime Minister that their countries can get a "good agreement".
Spot platinum fell 0.7% to $1,448.03 per ounce, after hitting its highest since August 2014 earlier today.
Source: Reuters
