Safe-haven gold snaps record highs, heads for fourth weekly gain


Bullion at Gold Investments Ltd. - file pic

GOLD prices climbed on Friday to hit a historic peak as central bank purchases amid geopolitical tensions sustained the momentum for the yellow metal, while strong U.S. economic data failed to dampen bullion's allure.

Spot gold was up 0.9% at $2,395.56 per ounce, as of 0740 GMT. Bullion hit a record high of 2,398.49 earlier in the session. U.S. gold futures gained 1.7% to $2,413.00.

"One thing that is definitely fulfilling this gold buy from central banks are the wars happening around the globe, if we look through the history this always happened as gold is a safe haven," ACY Securities analyst Luca Santos said.

Despite recent hot inflation data and a strong U.S. jobs report last week stirring more questions on the feasibility of rate cuts this year, bullion is poised for a fourth straight weekly rise and has gained over 15% so far for the year.

"We expect gold prices to rise in the next two months. From a technical perspective, this rally is a result of gold prices breaking out of a record 42-month consolidation period. It's like a coiled spring being let loose now," said Vincent Tie, sales manager at dealer Silver Bullion.

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

Elsewhere, the European Central Bank held interest rates at a record high but signalled it could start cutting as soon as June.

Spot silver rose 2% to $29.04 per ounce, hitting its highest levels since Feb 2021.

"As with past precious metal price rallies, silver will outperform gold once it breaks out. We are already seeing customers privy to this behaviour positing themselves in silver in past months," said Tie. Platinum rose 2.1% to $999.80 and palladium gained 1.8% to $1,065.00. All three were on track for a weekly gain. - Reuters

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

   

Next In Business News

Ringgit maintains stronger footing at the close
Gagasan Nadi Cergas to acquire student hostel concession for RM185mil
F&N ends FY24 with higher net profit of RM542.77mil
Bursa Malaysia reverses early losses to end higher ahead of MPC outcome
Proton October sales up 13.6%, YTD hits 125,557 units
TCS secures RM86.38mil construction contract from Sime Darby Property
Oil trades in tight range ahead of US election
China shares jump, dollar skittish with all eyes on US Election Day
Bank Negara unveils key principles to harness Islamic finance for economic growth
Aneka Jaringan unit secures RM39mil contract for KL project

Others Also Read