Treasure Magazine

Treasure Magazine

Gold rates on track for weekly rise

2 min read
Gold

LONDON: Gold rates held firm on Friday, on track for a fifth consecutive weekly rise, as fears of further tit-for-tat retaliation between Iran and Israel triggered safe-haven demand.

Spot gold was little changed at $2,378.30 per ounce as of 9:10 a.m. ET (1310 GMT), after rising as high as $2,417.59 earlier in the session. Prices were up more than 1% this week.

U.S. gold futures eased 0.2% at $2,393.50.

Explosions echoed over an Iranian city early on Friday in what sources described as an Israeli attack, but Tehran played down the incident and indicated it had no plans for retaliation.

“The escalation and de-escalation situation in the Middle East has taken hold of the markets. If the situation does de-escalate, then gold will pull back or consolidate as safe-haven buying dries up,” said David Meger, director of metals trading at High Ridge Futures.

“However, longer term, higher uptrend in gold will continue as the Federal Reserve might not be cutting rates as soon as the market expects.”

Fed officials have coalesced around the idea that there is no urgency to cut interest rates. The market currently sees a 65% chance of a rate cut in September.

Elevated interest rates reduce the appeal of holding non-yielding gold.

Gold, which has notched strong gains this year, will rise further on robust Chinese demand outlook and macro uncertainties, Chinese state-backed research house Antaike said.

Spot silver rose 0.3% to $28.29.

Meanwhile, HSBC lowered its 2024 average price forecasts for platinum to $1,055 per ounce from $1,105 and palladium to $1,095 per ounce from $1,138.

“A feature of both the palladium and the platinum markets has been weak prices in the face of substantial deficit,” it added.

Spot platinum fell 0.9% to $926.63, and palladium slipped 1.9% to $1,005.72. Both metals were headed for weekly declines.

 

About The Author

Copyright © All rights reserved. | Treasure Magazine