Gold prices rose on Friday, helped by a slight dip in the U.S. dollar and growing geopolitical tension, but remained on track for a weekly decline as markets awaited key U.S. data for further insights into the Federal Reserve’s monetary policy direction.
Spot gold improved 0.7% to $2,660.03 per ounce. However, bullion was down 2% so far this week.
U.S. gold futures gained 0.8% to $2,659.70.
One expert opined the escalating geopolitical tensions are making investors flock to gold in the hopes of capitalizing on the potential price increases.
The Israeli military said its air force struck a facility, opens new tab used by Hezbollah to store mid-range rockets in southern Lebanon on Thursday amid mutual ceasefire breach accusations.
Additionally, Russia on Thursday unleashed its second big attack on Ukraine’s energy infrastructure this month, triggering deep power cuts across the country.
Bullion is traditionally seen as a safe investment during economic and geopolitical uncertainties, such as conventional or trade wars.
Gold prices could test or dip below the key $2,600 level, with the metal likely to remain in a consolidation phase through December.
Spot silver added 1.1% to $30.58 U.S. per ounce, platinum gained 0.9% to $939.75 and palladium advanced 0.9% to $984.25 U.S.. All three metals were set for weekly declines.
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