Gold surpassed the $2,700 mark for the first time on Friday, extending a rally driven by expectations of further easing of monetary policy and safe-haven demand due to uncertainty over the US presidential election and conflicts. in the Middle East.
Spot gold rose 0.6% to $2,709.81 an ounce by 1145 GMT, having hit a record high of $2,714.00 earlier in the session. Bullion has gained more than 2% so far this week. US gold futures gained 0.7% to $2,725.
“Markets continue to look at geopolitics and overnight events in the Middle East continue to fan the flames of uncertainty,” said StoneX analyst Rhona O’Connell.
The Lebanese militant group Hezbollah said on Friday it was moving into a new and escalating phase in its war against Israel, while Israeli Prime Minister Benjamin Netanyahu vowed on Thursday night to press ahead with wars in Lebanon and Gaza.
Rising geopolitical tensions are driving investors to seek safe-haven assets like gold, driven by risk aversion and concerns about global market instability.
“It is not surprising that gold broke new highs and the psychologically important $2,700 during Asian time, as speculative interest appears to be coming from that region,” said independent analyst Ross Norman.
“Gold is benefiting from some very high-conviction trades and is not only ignoring key factors like declining inflation and Treasury yields, but is barely stopping for consolidation, let alone recovery.” taking profits”. [US/]
Gold has risen more than 31% this year, with gains driven by anticipation of further easing by major central banks, including the US Federal Reserve, and geopolitical tensions.
In physical markets, Indian traders were forced to offer discounts this week as record prices hit demand ahead of a key festival. [GOL/AS]
“From a technical point of view, if gold continues to rise, it could encounter resistance around $2,750 an ounce, which is the upper limit of an ascending trend channel we have seen since late July,” said Frank Watson, Dinero Kinesis market analyst.
Spot silver rose 1.2% to $32.08 and was headed for a weekly gain. Platinum added 1.5% to $1,007.25 and palladium rose 1.5% to $1,057.82.
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