Photo: AFP file
Gold surpassed the $2,700-per-ounce mark on Friday, reaching an unprecedented high as concerns over the US election and ongoing Middle East conflicts heightened demand for safe-haven assets. Additionally, a more accommodative monetary policy environment contributed to the surge. Spot gold strengthened by 0.5% to $2,706.76 per ounce at 6.20am, UAE time (0220 GMT), marking a nearly two percent increase for the week. US gold futures also climbed 0.5% to $2,722.
[Editor's Note: For real-time gold rates, click on the widget below or visit KT's dedicated Trading News page here.]
"Gold has shrugged off a rising dollar and continued to rally at every opportunity. It's a bull market that shows no signs of slowing down," commented Tai Wong, an independent metals trader based in New York. Overnight US economic data indicated a robust economy, which bolstered the US dollar and Treasury yields. However, traders still anticipate a 90% likelihood of a Federal Reserve rate cut in November.
The European Central Bank reduced interest rates for the third time this year as the eurozone economy struggles. BMI analysts predict that gold will trade within the $2,500-$2,800 range in the coming months, supported by the Fed's rate cuts and elevated geopolitical tensions.
Hezbollah announced plans to escalate hostilities with Israel following the assassination of Hamas leader Yahya Sinwar. Meanwhile, with just under three weeks left before the US presidential election, Democratic vice-president Kamala Harris and Republican former president Donald Trump are vying for every last vote.
Lower interest rates enhance the appeal of non-yielding bullion, which is viewed as a secure investment during turbulent times. Spot silver increased by 0.5% to $31.92 per ounce, set for a weekly gain. Platinum rose 0.5% to $996.85, and palladium advanced 0.7% to $1,049.25.
Elsewhere, data revealed that China's economy, the world's largest consumer of metals, expanded by 4.6% in the third quarter compared to the previous year, slightly exceeding analysts' forecasts.
