Gold Prices Surge, Achieving Best Weekly Gains in Nearly Two Years

TDT | Manama

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Gold prices soared past the USD 2,700 mark on Friday, marking their highest level in over two weeks and setting the stage for their largest weekly gain in nearly two years. The surge was driven by increased safe-haven demand, despite a strong U.S. dollar and reduced expectations for a Federal Reserve rate cut next month.

Spot gold rose by 1.5% to USD 2,709.24 per ounce by 01:51 p.m. ET (1851 GMT), its highest since November 6, while U.S. gold futures settled 1.4% higher at USD 2,712.20, according to Reuters.

The precious metal has gained more than USD 170 since hitting a two-month low of USD 2,536.71 last Thursday, reflecting strong investor confidence amid global economic uncertainties.

Meanwhile, expectations for a December rate cut from the U.S. Federal Reserve have significantly declined, with probabilities now standing at 53%, down from 82.5% just a week earlier.

In the broader precious metals market, spot silver climbed 1.5% to USD 31.24 per ounce. Platinum rose 0.6% to USD 964.36, while palladium declined by 1.4% to USD 1,015.00. All three metals are on track for weekly gains.

The rally underscores gold’s status as a preferred asset in times of economic uncertainty and shifting market expectations.