Gold Approaches Unprecedented Highs and Aims for Fourth Straight Weekly Advance

On Friday, gold prices surged to unprecedented heights, buoyed by central bank acquisitions amid geopolitical tensions. Despite robust American economic indicators failing to temper demand, the spot price of gold climbed 0.5 percent to $2,384.34 per ounce by 0345 GMT, reaching a peak of $2,395.29 earlier in the session. US gold futures also rose by 1.2 percent to $2,401.80.

Luca Santos, an analyst at ACI Securities, noted, “The only thing that definitively drives central banks to purchase gold is global conflicts. Throughout history, this has consistently occurred because gold serves as a safe haven.”

Despite recent inflation figures and a strong US jobs report last week raising doubts about the possibility of interest rate cuts this year, gold is on track for its fourth consecutive weekly gain, surging more than 15 percent since the year’s outset. However, the allure of non-yielding gold diminishes amid higher interest rates.

In other precious metals, silver advanced 1 percent in spot transactions to $28.75 per ounce, marking its highest levels since February 2021. Platinum climbed 0.7 percent to $986.65, while palladium edged up 0.1 percent to $1,049.83. All three metals are poised for weekly gains.