Nov 22 2024: Gold prices climbed in Asian trade on Friday, heading for a significant weekly gain as escalating Russia-Ukraine tensions spurred demand for safe-haven assets.
Spot gold rose 0.7% to $2,688.70 an ounce, while December gold futures gained 0.6% to $2,690.70 by 00:25 ET (05:25 GMT). The yellow metal has rebounded sharply this week, despite headwinds from a stronger dollar and rising Treasury yields, though it remains below record highs seen in late October.
Gold Set for Weekly Gains Amid Russia-Ukraine Escalation
Spot gold is poised for its fifth consecutive session of gains, up nearly 5% for the week.
Demand surged as tensions between Russia and Ukraine worsened, with Moscow issuing nuclear threats in response to Ukraine’s deployment of Western-made long-range missiles. Russia retaliated with advanced hypersonic missiles capable of carrying nuclear warheads, further escalating geopolitical risks.
Dollar Strength Weighs on Metals
Gold’s safe-haven appeal helped it outperform other metals, overcoming pressure from the dollar, which surged to a 13-month high this week. Market uncertainty surrounding the Federal Reserve’s rate plans and expectations of expansionary policies under a Trump presidency supported the dollar’s rise.
Other precious metals saw limited movement:
- Platinum and silver: Both edged lower on Friday but maintained small weekly gains.
- Copper: Industrial metals struggled, with benchmark copper futures on the London Metal Exchange falling 0.3% to $9,011.50 a ton. December copper futures slipped 0.5% to $4.0915 a pound.
Copper prices remain under pressure due to disappointing stimulus measures in China, the world’s largest copper importer, despite modest weekly gains following a prolonged downturn.
