Bengaluru — Gold prices eased on Friday but was on track for a weekly gain, as investors sought the safe-haven metal amid rising geopolitical tensions, while palladium was poised for its strongest week in more than a month.
Spot gold slipped 0.2% at $2,730.09/oz as of 1.55am GMT. Prices hit a record high of $2,758.37 on Wednesday and gained 0.4% so far in the week.
US gold futures fell 0.2% to $2,742.80/oz.
An Israeli strike killed at least 17 people at a school in central Gaza. US and Israeli negotiators will gather in Doha to prepare for renewed talks on a Gaza ceasefire deal.
Elsewhere, opinion polls show the race to the White House remains too tight to call, with less than two weeks to go before the November 5 election.
“These elections are more dynamic and unpredictable than many previous ones. Such volatility creates additional interest in gold,” said Julia Khandoshko, CEO at European broker Mind Money.
“In the next three months, gold may reach $2,800/oz, and from the annual perspective, it can surpass the psychologically important $3,000/oz barrier.”
Palladium dipped 0.4% to $1,152.50/oz but rose 7% for the week.
The US asked the Group of Seven allies to consider sanctions on Russian palladium and titanium, Bloomberg News reported. Russia’s Nornickel is the world’s largest palladium producer.
“The possibility of disruptions to Russian supply comes as the rest of the market struggles to maintain output,” said Daniel Hynes, senior commodity strategist, ANZ.
Spot silver fell 0.3% to $33.62/oz after scaling its highest level since 2012 earlier this week.
“Silver has started playing catch up to gold. It benefits from its dual role of monetary value and as an industrial metal with growth driven by the breakneck growth of photovoltaics,” said Paul Wong, market strategist at Sprott Asset Management.
Platinum lost 0.7% at $1,019.45.
Reuters
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