Gold is headed for its biggest weekly gain since the end of 2020 as the war in Ukraine boosted demand for the haven asset.
Investors are assessing the economic fallout Russia’s invasion of its neighboring country, which is obstructing the flow of energy, grains and metals. The resulting jump in oil prices has raised concerns about global growth and inflation risks.
Investors have sought bullion amid uncertainty, with holding in exchange-traded funds backed by the metal’s highest climb since March. Gold prices rose on Friday after a US jobs report that showed wage growth slowed despite a spurt in hiring last month. The figures could offer some respite from strong inflationary pressures as the Federal Reserve prepares to raise interest rates.
“The metal is in a sweet spot at the moment as traders will certainly want to stay in touch with gold given the war situation in Ukraine,” said Ava Trade Chief Market Analyst Naeem Aslam. Still, the jobs data confirms that the Fed has got the green light to raise the interest rate and is likely to keep gold prices tight.”
Spot gold rose 1.3% to $1,960.84 an ounce in New York at 11:20 am. Close to that price would be a 3.8% weekly gain, the biggest since November 2020. Palladium rose 5.8% on concerns of potential supply disruptions, bringing the week’s gain to nearly 24%. Russia produces about 40% of the metal mined globally. Silver and Platinum rose.
This story has been published without modification in text from a wire agency feed. Only the title has been changed.
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