BENGALURU: Gold prices hit a record peak on Friday as investors rushed to safe-haven investments amid Middle East tensions and Chinese economic challenges.
Spot gold was up 1% at $2,397.84 per ounce as of 9:29 a.m. ET (1329 GMT) after hitting a record high of $2,400.35. Prices were up nearly 3% for the week. US gold futures gained 1.8% to $2,414.80.
“The positive factors for gold outweigh the negative. The heightened tensions in Middle East are the main driver for gold’s recent surge,” said Chris Gaffney, president of world markets at EverBank.
The United States expects an attack by Iran against Israel but one that would not be big enough to draw Washington into war, a US official said on Thursday.
“Gold continues to go from strength to strength as we are witnessing fear of missing out on clear display,” Ole Hansen, head of commodity strategy at Saxo Bank, said in a note.
“Fear of missing an ongoing rally creates a strong buy-on-dip mentality, in the process reducing the risk of recently established longs being challenged.”
Elsewhere, Thursday’s US Producer Price Index (PPI) came in softer than expected, a day after March’s hot Consumer Price Index (CPI). “Gold has pushed back against some data that should have typically been negative. It will be somewhat healthy to see a correction in the bulls market, but the trend will continue to be positive,” Gaffney added.
Bullion also got a boost from data that showed China’s exports contracted sharply in March while imports unexpectedly shrank. On the physical side, China’s physical gold premiums rose this week, driven by strong demand to shore up a depreciating yuan while soaring prices dulled activity in India.
Spot silver rose 3% to $29.33 per ounce, its highest level since early 2021. Platinum rose 2% to $999.00 and palladium firmed 3% to $1,077.50. All three metals were poised for weekly gains.
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