Gold prices again edged up on Friday after recovering from a profit-taking bout as Middle East tensions escalate and U.S. election jitters supported prices, reports Reuters.
Spot gold was up 0.2 percent at $2,741.50 per ounce by on Friday (Local time). Prices hit a record $2,758.37 on Wednesday and logged a third straight weekly gain.
U.S. gold futures settled 0.2 percent higher at $2,754.60.
Bob Haberkorn, senior market strategist at RJO Futures said that the fact that maybe something is going to happen this weekend between Israel and Iran could have triggered some safe-haven buying going into the weekend.
According to the media outlet, non-yielding gold has risen over 32 percent so far this year as safe-haven demand stemming from ongoing tensions in the Middle East bolstered prices, along with a half-point basis cut by the Federal Reserve.
On the other hand, uncertainty around U.S. presidential elections also boosted bullion demand as opinion polls show the race to the White House remains tight.
Gold has rallied despite gains in the U.S. dollar, which is set for its fourth weekly rise on increasing odds of a Donald Trump victory.
Gold prices have slipped back into anti-traditional-driver mode in recent weeks, seemingly caught up in a wider “Trump trade,” Capital Economics said in a note.
“One can make logical cases for gold prices to rise further from here. But we would stress that gold is not a one-way bet,” Capital Economics said as they see a good chance of a sizeable price correction.
Bd-pratidin English/Tanvir Raihan
