Gold breached the $2,700-per-ounce level on Friday for the first time ever, as U.S. election jitters and simmering Middle East tensions boosted safe-haven demand, while a looser monetary policy environment also added fuel to the rally.
Spot gold was better by 0.5% to $2,706.76 per ounce , adding nearly 2% so far in the week. U.S. gold futures rose 0.5% to $2,722.00.
U.S. economic data released overnight pointed to a strengthening economy, which boosted the U.S. dollar and Treasury yields. But traders still see a 90% chance of a Federal Reserve rate cut in November.
The European Central Bank cut interest rates for the third time this year as the euro zone economy sags.
Gold is expected to trade within the range of $2,500-$2,800 in the coming months, as prices receive support from Fed’s rate cuts and high levels of geopolitical tension.
Spot silver rose 0.5% to $31.92 U.S. per ounce and was headed for a weekly gain. Platinum added 0.5% to $996.85 U.S. and palladium increased 0.7% to $1,049.25 U.S..
Elsewhere, data showed that top metals consumer China’s economy expanded 4.6% in the third quarter from a year earlier, slightly beating analysts’ expectations.
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