Gold jumps, on track for best week in over a year on safe-haven demand
Tensions between Russia-Ukraine escalate
Bullion is up over 5% for the week so far
Silver, platinum, and palladium are on track for weekly gains
Updates prices
By Rahul Paswan
Nov 22 (Reuters) -Gold prices rose over 1% to hit a two-week peak on Friday, heading for the best weekly performance in more than a year, buoyed by safe-haven demand as Russia-Ukraine tensions intensified.
Spot gold XAU= jumped 1.3% to $2,703.05 per ounce as of 1245 GMT, hitting its highest since Nov. 8. U.S. gold futures GCcv1 gained 1.1% to $2,705.30.
Bullion rose despite the U.S. dollar hitting a 13-month high, while bitcoin hit a record peak and neared the $100,000 level. MKTS/GLOB
"With both gold and USD (U.S. dollar) rising, it seems that safe-haven demand is lifting both assets," said UBS analyst Giovanni Staunovo.
Ukraine's military said its drones struck four oil refineries, radar stations and other military installations in Russia.
Gold has gained over 5% so far this week, its best weekly performance since October 2023. Prices have gained around $173 after slipping to a two-month low last week.
"We understand that the price setback has been used by 'Western world' investors under-allocated to gold to build exposure considering the geopolitical risks that are still around. So we continue to expect gold to rise further over the coming months," Staunovo said.
Bullion tends to shine during geopolitical tensions, economic risks, and a low interest rate environment. Markets are pricing in a 59.4% chance of a 25-basis-points cut at the Fed's December meeting, per the CME Fedwatch tool.
However, "if Fed skips or pauses its rate cut in December, that will be negative for gold prices and we could see some pullback," said Soni Kumari, a commodity strategist at ANZ.
The Chicago Federal Reserve president reiterated his support for further U.S. interest rate cuts on Thursday.
On Friday, spot silver XAG= rose 1.8% to $31.34 per ounce, platinum XPT= eased 0.1% to $960.13 and palladium XPD= fell 0.6% to $1,023.55. All three metals were on track for a weekly rise.
Spot gold price in USD per oz https://reut.rs/490Ob4S
Reporting by Rahul Paswan in Bengaluru; Editing by Krishna Chandra Eluri
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