Shafaq News/
Gold prices climbed on Friday, supported by safe-haven demand arising from the
Middle East conflict, while spotlight shifted towards U.S. payrolls report to
gauge the trajectory of the Federal Reserve's policy path.
Spot gold
was up 0.3% at $2,662.72 per ounce, as of 0649 GMT, after climbing to an
all-time high of $2,685.42 on Sept. 26. Bullion has gained 0.2 for the week.
U.S. gold
futures edged 0.2% higher to $2,682.90.
A line chart
titled "Spot gold price in USD per oz" that tracks the metric over
time.
A line chart
titled "Spot gold price in USD per oz" that tracks the metric over
time.
The dollar
(.DXY), opens new tab eased 0.2%, pulling back from over a one-month high,
making greenback-priced bullion less expensive for other currency holders.
Geopolitical
tensions, particularly concerning Israel and Iran, are supporting gold prices
and unless these risks subside, prices are likely to remain near record levels,
said Ajay Kedia, director at Kedia Commodities, Mumbai.
The U.S. is
discussing strikes on Iran's oil facilities as retaliation for Tehran's missile
attack on Israel, President Joe Biden said, while Israel's military hit Beirut
with new air strikes in its battle against Lebanese armed group Hezbollah.
Bullion is
considered a safe investment during times of political and financial uncertainty,
and thrives in a low-rate environment.
The U.S.
nonfarm payroll data is due at 1230 GMT. New York Fed President John Williams
and Chicago Fed President Austan are also scheduled to speak later in the day.
If the NFP
report comes in strong, it will be positive for the dollar and then gold prices
will see some profit-booking, Kedia added.
U.S. stocks
finished lower on Thursday as investors kept a watchful eye on the growing
conflict in the Middle East.
Traders see
a 65% chance of a 25-basis-point Fed rate cut in November, according to CME
FedWatch Tool., opens new tab
BMI said in
a note it expects gold prices to trade within the range of $2,500 to $2,800 in
the coming months.
Spot silver
inched 0.1% higher to $32.08 per ounce, and has gained about 1.4% so far this
week.
Platinum
climbed 1.1% to $1,001.47 and palladium advanced 1.01% to $1,008.71.
(Reuters)