Gold set for 3rd weekly gain as investors seek safe haven
Gold prices fell on Friday, but were poised for a third straight weekly gain, bolstered by safe-haven demand amidst geopolitical and economic uncertainties as well as anticipation of US Federal Reserve rate cut later this year.
Spot gold was down 0.3 percent at $3,034.02 an ounce as of 3:59 p.m. Saudi time. US gold futures eased 0.1 percent to $3,040.90. Bullion has gained 1.7 percent so far this week.
“It’s just a little bit of profit taking ahead of the weekend. Ongoing safe-haven demand, both based on trade concerns and geopolitical risks continues to be the primary driving force,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Gold has hit 16 record highs so far this year, amid geopolitical tensions and economic uncertainty, with four surpassing the crucial $3,000 mark and hitting an all-time peak of $3,057.21 per ounce on Thursday.
US President Donald Trump still intends for new reciprocal tariff rates to take effect on April 2.
The Fed held its benchmark interest rate steady on Wednesday as widely expected, but indicated two quarter-percentage-point cuts before the end of the year.
Traders are pricing in 71 basis points of easing this year from the Fed with at least two rate reductions of 25 bps each, with a cut in July fully priced in, LSEG data showed.
Israel announced an escalation in air, land, and sea strikes against Hamas in Gaza to pressure the release of remaining hostages, effectively abandoning a two-month ceasefire and launching an all-out air and ground campaign against the dominant Palestinian militant group.
Gold, traditionally viewed as a safe-haven investment during times of inflation or economic volatility, tends to do well in a low interest rate environment.
Spot silver slid 1.4 percent to $33.08 an ounce, platinum lost 1 percent to $974.90 and palladium shed 0.6 percent to $946. All three metals were poised for weekly losses.
