PT Rifan Financindo Berjangka – Gold Holds Four-Day Gain on Haven Demand and Dovish Fed Comments
Gold held a four-day rally as haven demand added support amid an escalation in Russia’s war with Ukraine, while traders assessed prospects for further easing by the Federal Reserve.
Bullion traded near $2,670 an ounce — on track for its best week since April — after Ukraine said Russia launched a “new” kind of ballistic missile at the city of Dnipro in an alarming signal to Kyiv’s Western backers. Heightened geopolitical tensions tend to drive investors to safety assets, such as gold.
Traders were also weighing comments from Fed Bank of Chicago President Austan Goolsbee, who said he sees interest rates moving “a fair bit lower” and expressed confidence inflation is easing toward the central bank’s target. Lower rates typically benefit bullion as it doesn’t pay interest.
The precious metal has gained almost 30% this year, supported by healthy central bank buying, increasing haven demand and the Fed’s cutting cycle. There are widespread expectations for fresh records in 2025, with Goldman Sachs Group Inc. and UBS Group AG both issuing bullish outlooks in recent days.
Haven demand helped outweigh the headwind of the rebounding dollar after mixed US labor data. A stronger greenback makes commodities priced in the currency more expensive for most buyers.
Spot gold was flat at $2,673.11 an ounce at 8:01 a.m. in Singapore, on track for a 4% weekly increase. The Bloomberg Dollar Spot Index was little changed, after two days of gains. Silver steadied below $31 an ounce, while platinum and palladium were also flat.
Source: Bloomberg
Gold climbs to over 1-week high on safe-haven demand
Spot gold rose for a fourth consecutive session on Thursday, hitting an over one-week high as safe-haven demand soared following AI bellwether Nvidia’s lackluster revenue forecast and intensifying Russia-Ukraine tensions.
Spot gold was up 0.8% at $2,670.49 per ounce by 01:48 p.m. EST (1848 GMT), while U.S. gold futures settled 0.9% higher at $2,674.90.
Investors flock to safe-haven assets during global crises, and gold has soared to multiple record highs since the Middle East conflict erupted in October last year.
With the United States vetoing a U.N. ceasefire resolution in Gaza and renewed Russia-Ukraine tensions, geopolitical risk premiums remain elevated, ensuring gold’s enduring appeal.
Global stocks eased after AI bellwether Nvidia’s revenue growth forecast failed to excite investors.
Spot gold prices are up 4% so far this week, their best performance since April, recovering from last week’s sharpest weekly drop in over three years. The decline in bullion was driven by a soaring dollar, boosted by “Trump Trade” euphoria.
Brokerages expect President-elect Trump’s proposed tariffs to spur global market volatility and inflation, limiting central banks’ ability to ease monetary policy.
Meanwhile, a Reuters poll shows most economists anticipate a Federal Reserve rate cut in December, with smaller reductions projected for 2025.
Investor focus is also on several Fed officials scheduled to speak this week. Expectations for a December rate cut have diminished notably, with the likelihood now at 56%, a sharp drop from 82.5% just a week earlier.
Spot silver edged 0.1% lower to $30.85 per ounce, platinum gained 0.5% t0 $965.75 and palladium advanced 1.5% to $1,036.13. PT Rifan Financindo Berjangka.
Source : Reuters