As a result of growing geopolitical tensions and economic uncertainty, demand for safe haven assets drove gold prices higher on Friday, breaking the $2,700 barrier for the first time in two weeks.
Muscat: Gold is poised for its best weekly performance in over a year despite a stronger dollar and diminished expectations of a U.S. interest rate cut next month.
Spot gold climbed 1% to $2,696.77 per ounce by 15:14 GMT after hitting a peak of $2,709.99 earlier in the session—its highest level since November 8. U.S. gold futures also rose 0.9% to $2,698.90.
Gold has gained over 5% this week, adding $173 from its two-month low of $2,536.71 reached last Thursday. This marks the metal’s strongest weekly performance since October last year when Middle Eastern unrest sent prices soaring.
Safe-haven demand for gold typically rises during geopolitical instability, economic uncertainty, and low-interest-rate environments. Despite the dollar hitting a 13-month high and Bitcoin reaching an all-time peak, gold remains the go-to asset for many investors seeking refuge from market volatility.
Analysts project the rally will continue, with gold potentially reaching $2,750 by mid-December.
Other precious metals also saw movement: spot silver gained 1.4% to $31.22 per ounce, platinum rose 0.9% to $969.25, and palladium slipped 1.5% to $1,014.25. All three are on track for weekly gains.
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