NEW YORK: Gold prices edged up on Friday after recovering from a profit-taking bout as Middle East tensions and US election jitters supported prices, while palladium prices extended gains to 10-month highs. Spot gold was up 0.2% at $2,741.50 per ounce by 01:44 p.m. ET (1744 GMT).
Prices hit a record $2,758.37 on Wednesday and logged a third straight weekly gain. US gold futures settled 0.2% higher at $2,754.60. The fact that maybe something is going to happen this weekend between Israel and Iran could have triggered some safe-haven buying going into the weekend, said Bob Haberkorn, senior market strategist at RJO Futures.
At least nine Palestinians were killed and several wounded in an Israeli air strike on Al-Shati, medics told Reuters. Non-yielding gold has risen over 32% so far this year as safe-haven demand stemming from ongoing tensions in the Middle East bolstered prices, along with a half-point basis cut by the Federal Reserve. Uncertainty around US presidential elections also boosted bullion demand as opinion polls show the race to the White House remains tight.
Gold has rallied despite gains in the US dollar, which is set for its fourth weekly rise on increasing odds of a Donald Trump victory. Gold prices have slipped back into anti-traditional-driver mode in recent weeks, seemingly caught up in a wider “Trump trade,” Capital Economics said in a note.
“One can make logical cases for gold prices to rise further from here. But we would stress that gold is not a one-way bet,” Capital Economics said as they see a good chance of a sizeable price correction.
Spot palladium hit a ten-month high for the second consecutive day, amid concerns about exports from Russia. It was last up 3.2% at $1,194.36 per ounce. Palladium rose 9% on Thursday following news that the US asked Group of Seven allies to consider additional ways to restrict Russian revenues for the metal sector by exploring restriction on palladium and titanium.
Spot silver fell 0.3% to $33.61 per ounce after hitting a 12-year high of $34.87 earlier this week. Platinum lost 0.2% to $1,024.20.—Reuters
Copyright Business Recorder, 2024
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