Gold broke the $2,700 an ounce mark on Friday for the first time in its history as concerns over the US election and simmering tensions in the Middle East boosted demand for safe-haven assets, while The easing of monetary policy also fueled the rise.
Spot gold firmed 0.5% to $2,706.76 an ounce by 0220 GMT, rising almost 2% since the start of the week. U.S. gold futures rose 0.5% to $2,722.00.
“Gold has laughed off the dollar’s surge and is picking up every chance it gets. It’s just a bull market that shows no signs of exhaustion,” said Tai Wong, an independent metals dealer based in New York. [USD/]
US economic data released overnight indicated a strengthening economy, which boosted the US dollar and Treasury yields. But traders still see a 90% chance that the Federal Reserve will cut interest rates in November. [US/]
The European Central Bank has cut interest rates for the third time this year as the euro zone economy weakens.
Gold is expected to trade in a range of $2,500 to $2,800 in the coming months, with prices supported by Fed rate cuts and high levels of geopolitical tension, according to BMI analysts.
Hezbollah said it would intensify the war with Israel following the assassination of Hamas leader Yahya Sinwar.
Elsewhere, with less than three weeks left to vote in the US presidential election, Democratic Vice President Kamala Harris and Republican former President Donald Trump are working to secure the support of every voter.
The fall in interest rates reinforces the appeal of bullion, which does not offer a return and is considered a safe investment in times of crisis.
Spot silver rose 0.5% to $31.92 an ounce and was headed for a weekly gain. Platinum rose 0.5% to $996.85 and palladium rose 0.7% to $1,049.25.
Elsewhere, data showed that the economy of China, the main metals consumer, grew 4.6% in the third quarter from a year earlier, slightly beating analysts’ expectations.
