Safe-haven gold rises 1%, heads for best week in a year
Ukraine's military struck four Russian oil refineries
Bullion up over 5% for the week so far
Silver, platinum and palladium on track for weekly gains
Adds comments and updates prices
By Daksh Grover
Nov 22 (Reuters) -Gold prices rose 1% and were headed for their best week in a year on Friday, supported by safe-haven demand in the face of further escalation in the Russia-Ukraine war, while investors assessed the outlook for U.S. interest rate cuts.
Spot gold XAU= rose 1% to $2,696.76 per ounce as of 0800 GMT. Bullion is up more than 5% for the week so far, the most since early October 2023.
U.S. gold futures GCv1 gained 0.9% to $2,699.30.
Supporting gold "the key trigger appears to be geopolitical tensions (such) as Ukraine's attacks on Russian infrastructure, followed by dovish remarks from Federal Reserve officials," said Soni Kumari, a commodity strategist at ANZ.
Ukraine's military said its drones struck four oil refineries, radar stations and other military objects in Russia in an attack in the early hours of Friday.
Gold's appeal is bolstered by geopolitical tensions, economic risks and a low interest-rate environment.
Meanwhile, the Chicago Federal Reserve President on Thursday reiterated his support for further U.S. interest rate cuts and his openness to slowing them down.
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.
"If Fed skips or pauses its rate cut in December, that will be negative for gold prices and we could see some pullback," Soni Kumari added.
Investors will monitor the U.S. consumer sentiment (final) data due at 0300 GMT, along with Fed Governor Michelle Bowman's remarks, for further cues on the rate cut outlook.
Gold's near-term movement could be influenced by next week's key U.S. data releases, such as the preliminary GDP and core PCE, with prices expected to target $2,690-$2,715 based on recent trends, said Nicholas Frappell, global head of institutional markets at ABC Refinery.
On Friday, spot silver XAG= rose 1.7% to $31.31 per ounce, platinum XPT= added 0.9% to $969.35 and palladium XPD= was up 1.3% to $1,042.50. All three metals were on track for a weekly rise.
Spot gold price in USD per oz https://reut.rs/490Ob4S
Reporting by Daksh Grover in Bengaluru; Editing by Alan Barona, Sonia Cheema and Sumana Nandy
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