Dubai, UAE – Gold prices surged over 3% on Friday, heading for their most robust weekly performance in seven months, as escalating tensions in the Middle East prompted investors to seek refuge in safe-haven assets, Reuters reported on Friday.
The price of spot gold increased by 3.2% to reach $1,928.15 per ounce by 3:09 p.m. ET (1908 GMT), while US gold futures settled 3.1% higher at $1,941.50. This resulted in a weekly gain of 5.2%.
Investors closely monitored the intensifying conflict in the Middle East, which had been unsettling markets since the week’s outset. The development led to increased investment in assets perceived as safe havens, including gold.
“Investors are fleeing to safe havens as the risks of Middle East tensions grow. If the geopolitical situation worsens, there is a good chance that gold prices could reach $2,000 levels this year. We have moved from the mid-$1,800s to the mid-$1,900s, so $2,000 is within reach,” Edward Moya, senior market analyst at OANDA, was quoted as saying by Reuters.
According to the CME Fedwatch tool, traders currently see a 69% chance that the Federal Reserve will leave interest rates unchanged for the remainder of the year.
Meanwhile, spot silver saw a 4% rise to $22.72 per ounce, marking its first weekly gain in three weeks. Platinum also increased by 1.4% to $880.42, while palladium experienced a 0.3% drop, settling at $1,141.24 and heading for a weekly decline.
