Gold Climbs Higher as Dollar Weakens and Ukraine Risks Escalate

The price of gold has increased for the fourth day in a row, driven by a weakening US dollar and rising tensions in Ukraine that have boosted the demand for safe-haven assets.

On Friday, bullion jumped as much as 1.1%, trading near $2,666 per ounce, following a warning from Russian President Vladimir Putin about potential ballistic missile strikes on “decision-making centers” in Kyiv. At the same time, the dollar weakened against major currencies, with the dollar index on track for its first weekly drop in two months, making gold more accessible to a broader range of investors.

Nonetheless, despite this uptick, bullion is down about 2% for the week due to signs of decreasing tensions in the Middle East, with a US-brokered cease-fire between Israel and Hezbollah scheduled to begin on November 27.

ADVERTISEMENT

CONTINUE READING BELOW

This year, gold has risen nearly 30%, supported by the US Federal Reserve’s monetary easing policies, central bank purchases, and heightened geopolitical and economic uncertainty. Some market analysts predict potential new peaks in 2025, with optimistic forecasts being released this month from both Goldman Sachs Group and UBS Group AG.

As of 10:24 a.m. in London, spot gold increased 0.9% to $2,662.52 per ounce. The Bloomberg Dollar Spot Index fell by 0.2% and has dropped 1.1% this week. Other precious metals, such as silver, platinum, and palladium, also recorded increases.

Swaps markets currently indicate a two-thirds likelihood that the Fed will reduce borrowing costs next month, a substantial rise from nearly equal chances earlier this week. Generally, lower borrowing costs are favorable for gold, which does not earn interest.

© 2024 Bloomberg

Stay informed with Moneyweb’s in-depth finance and business news on WhatsApp here.

  • Related Posts

    They Treated Us Like Beasts!

    Mzansi artist Mawhoo has voiced her anger following a distressing experience at Life Fourways Private Hospital. The singer, renowned for her hit “Gucci,” took to social media to share claims…

    Continue reading
    AVAX Price Drops, QUBIC Stays Steady, and BitLemons Shines as a New Contender in GambleFi

    Disclosure: This article is for informational purposes only and should not be considered as investment advice. The materials presented here are intended for educational use exclusively. As Avalanche faces challenges…

    Continue reading

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    They Treated Us Like Beasts!

    They Treated Us Like Beasts!

    AVAX Price Drops, QUBIC Stays Steady, and BitLemons Shines as a New Contender in GambleFi

    AVAX Price Drops, QUBIC Stays Steady, and BitLemons Shines as a New Contender in GambleFi

    Gauteng Derbies Shine in Vodacom URC Spotlight

    Gauteng Derbies Shine in Vodacom URC Spotlight

    Trump and Putin Align on Ukraine Negotiations Amid Shift in US Policy

    Trump and Putin Align on Ukraine Negotiations Amid Shift in US Policy

    National Epilepsy Week: Raising Awareness About a Global Condition Impacting Millions

    National Epilepsy Week: Raising Awareness About a Global Condition Impacting Millions

    SHIB and DOGE Traders Seize Unique Buying Opportunity Amid Latest Cryptocurrency Trend.

    SHIB and DOGE Traders Seize Unique Buying Opportunity Amid Latest Cryptocurrency Trend.