Gold breaks $2,700 barrier for first time on safe haven demand
Hezbollah says it will escalate war with Israel
Gold hits record high of $2,714.00; prices up 2% for the week
Silver set for weekly gain
Updates prices as of 1145 GMT
By Daksh Grover and Swati Verma
Oct 18 (Reuters) -Gold raced past the $2,700 mark for the first time on Friday, extending a rally driven by expectations of further monetary policy easing and safe-haven demand due to uncertainty about the U.S. presidential elections and Middle East conflicts.
Spot gold XAU= rose 0.6% to $2,709.81 per ounce by 1145 GMT, having hit an all-time high of $2,714.00 earlier in the session. Bullion has gained over 2% so far this week. U.S. gold futures GCcv1 gained 0.7% to $2,725.
"The markets continue to look to geopolitics and the overnight developments in the Middle East continue to fan the flames of uncertainty," said StoneX analyst Rhona O'Connell.
Lebanon's Hezbollah militant group said on Friday it was moving to a new and escalating phase in its war against Israel, while Israel's Prime Minister Benjamin Netanyahu late on Thursday vowed to press on with wars in Lebanon and Gaza.
Rising geopolitical tensions prompt investors to seek safe-haven assets like gold, driven by risk aversion and concerns over global market instability.
"There's no surprise that gold broke fresh highs and the psychologically important $2,700 during Asian hours as it appears speculative interest is coming from that region," independent analyst Ross Norman said.
"Gold is benefiting from some very high conviction trades and not only is ignoring key factors like inflation declining and Treasury yields, but it is scarcely pausing for consolidation - let alone profit taking." US/
Gold has surged more than 31% this year, with gains driven by the anticipation of more easing by major central banks including the U.S. Federal Reserve and geopolitical tensions.
In the physical markets, dealers in India were forced to offer discounts this week, as record high prices dampened demand ahead of a key festival. GOL/AS
"On a technical basis, should gold continue to push higher, it may encounter resistance at around $2,750 an ounce, which is the upper boundary of a rising trend channel that we’ve seen since late July," said Frank Watson, market analyst at Kinesis Money.
Spot silver XAG= rose 1.2% to $32.08 and headed for a weekly gain. Platinum XPT= added 1.5% to $1,007.25 and palladium XPD= increased 1.5% to $1,057.82.
Precious Metals Price Performance https://tmsnrt.rs/4f57VWL
Spot gold price in USD per oz https://reut.rs/3Nx5WyS
Reporting by Daksh Grover and Swati Verma in Bengaluru; Editing by Susan Fenton and Louise Heavens
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
