Gold prices rose on Friday and are set to achieve their eighth consecutive weekly gain, benefiting from safe-haven demand amid ongoing geopolitical and economic uncertainty alongside expectations of interest rate cuts by the U.S. Federal Reserve.
Spot gold increased 0.1% to $3,977.87 per ounce by 1:20 GMT. The precious metal has risen 2.3% so far this week.
U.S. December gold futures climbed 0.5% to $3,992.40, according to Reuters.
According to the CME’s FedWatch tool, traders currently expect a 25 basis point rate cut in October and another cut in December, with probabilities of 95% and 82%, respectively.
Markets were affected this week by political unrest in Japan and France, along with the ongoing U.S. government shutdown, factors that weighed on investor confidence and boosted gold’s appeal as a safe haven.
Gold surpassed the $4,000 per ounce mark for the first time on Wednesday, reaching an unprecedented level of $4,059.05.
Gold, which yields no income, is typically seen as a hedge during times of geopolitical and economic uncertainty. Its price has jumped about 52% since the start of the year.
Other precious metals also rose: spot silver gained 1.2% to $49.70 per ounce after hitting an all-time high of $51.22 on Thursday. Platinum rose 0.4% to $1,625.30, and palladium increased 1% to $1,426.
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