Investing.com – Gold retained its shine across the safe haven world on Friday, revisiting $2,000 the first time since August and eventually setting a three-month high, as contagion worries from the Middle East’s latest war and the Federal Reserve’s hesitancy to raise US interest rates anymore sent a horde of investors toward the yellow metal.
“Gold’s safe haven status has been questioned on a number of occasions over recent years but times like this highlight that in times of significant uncertainty, traders look for assets with a track record,” said Craig Erlam, analyst at online trading platform OANDA.
“Of course, the circumstances are quite favorable for gold as US yields are rapidly rising at the same time, reducing Treasuries’ appeal in the short-term. But the combination of geopolitical and economic uncertainty, both of which could have implications for inflation and interest rates, is increasing gold’s appeal, for now.”
Gold’s most-active contract on New York’s Comex, December, settled up $13.90, or 0.7%, at $1,994.40 per ounce. After an uninterrupted four-day rally, the benchmark gold futures contract finished the week up $52.90, or 2.7% — adding to the previous week’s run up of 5.2%.
The , more closely watched by some traders than futures, was at $1,981.49 by 15:30 ET (19:30 GMT), up $7.08, or 0.4%, after a session high of $1,997.20. The spot price, which reflects real-time trades in bullion, was up 2.4% on the week, adding to the previous week’s gain of 5.4%.
Gold’s $2,000 charge came after the US and bond yields — marked by the return on the — both eased from their highs of this week, allowing the yellow metal to regain its mantle as the preferred safe haven.
(Ambar Warrick contributed to this item)
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