The gain can be attributed to the combination of geopolitical concerns over the Russia-Ukraine conflict and soaring inflation in the United States. These factors have pushed a horde of safe-haven buyers into the yellow metal.
The most active gold contract on New York Comex April slid $2.20 to settle Friday’s trade down 0.1% to $1,899.80 an ounce ahead of the long break of the weekend leading up to Monday’s market holiday for President’s Day in the United States.
For the week, the benchmark gold futures contract rose 3.1%, its highest one-week level since November.
Earlier on Friday, it hit an intraday high of $1,905, marking an eight-month high, with June being the last time gold hit levels of $1,900.
Ed Moya, analyst at online trading platform OANDA, told investing.com: “Gold prices had a February month and should find key resistance around the $1,930 level.
“As Monday is a holiday in the United States, this could last if tensions in Ukraine do not escalate further.”
“In just a few months, investors have flip-flopped with gold.
“Wall Street has gone from expecting robust economic growth of around 4% this year and a return to normal next year, to fearing that aggressive Fed tightening could reverse the curve. next year and plunge this economy into a recession in early 2024.”
Russian-backed rebels and Ukrainian forces on Thursday traded accusations that each had fired across the ceasefire line in eastern Ukraine.
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