Safe-haven gold snaps record highs, heads for fourth weekly gain

Shafaq News / Gold prices climbed on Friday to hit a historic peak as central bank purchases amid geopolitical tensions sustained the momentum for the yellow metal, while strong U.S. economic data failed to dampen bullion's allure.

Spot gold was up 0.5% at $2,384.34 per ounce, as of 0345 GMT. Bullion hit a record high 2,395.29 earlier in the session. U.S. gold futures gained 1.2% to $2,401.80.

"One thing that is definitely fulfilling this gold buy from central banks are the wars happening around the globe, if we look through the history this always happened as gold is a safe haven," ACY Securities analyst Luca Santos said.

Despite recent hot inflation data and a strong U.S. jobs report last week stirring more questions on the feasibility of rate cuts this year, bullion is poised for a fourth straight weekly rise and has gained over 15% so far for the year.

"We expect gold prices to rise in the next two months. From a technical perspective, this rally is a result of gold prices breaking out of a record 42-month consolidation period. It's like a coiled spring being let loose now," said Vincent Tie, sales manager at dealer Silver Bullion.

Higher interest rates reduce the appeal of holding non-yielding gold.

Elsewhere, the European Central Bank held interest rates at a record high but signalled it could start cutting as soon as June.

Spot silver rose 1% to $28.75 per ounce, hitting its highest levels since Feb 2021.

"As with past precious metal price rallies, silver will outperform gold once it breaks out. We are already seeing customers privy to this behaviour positing themselves in silver in past months," said Tie.

Platinum rose 0.7% to $986.65 and palladium edged 0.1% higher to $1,049.83. All three were on track for a weekly gain.

(Reuters)