Gold prices climbed on Friday, buoyed by safe-haven demand amid ongoing conflicts in the Middle East, while investors awaited clarity on the future trajectory of US interest rates.
In spot transactions, the price of gold rose by 0.7% to settle at $2,019.12 per ounce, rebounding from its five-week low in the previous session. US gold futures also saw an uptick of 0.8%, reaching $2,021.6.
The potential for an earlier cut in US interest rates was signalled by Atlanta Fed President Rafael Bostic, stating his openness to such a move if there is “convincing” evidence of inflation falling faster than anticipated in the coming months. Lowering interest rates diminishes the opportunity cost of holding gold.
Silver experienced a 0.9% increase in spot transactions in other precious metals, reaching $22.74 per ounce. Platinum surged by 2.4% to $904.74, while palladium rose by 2.7% to $940.28.
