Gold prices were poised for a third consecutive weekly gain on Friday as the Middle East conflict kept investors drawn towards safety of bullion despite a higher-for-longer U.S. interest rate backdrop.
Spot gold edged 0.1% higher to $1,986.76 per ounce early Friday morning. U.S. gold futures were steady at $1,996.80.
Israeli forces executed their biggest ground attack in Gaza in their war with Hamas overnight as anger grew in the Arab world over Israel’s unrelenting airstrikes on the besieged Palestinian territory.
Gold has gained about 9% as investors sought refuge from the potential fallout of the Israel-Hamas war that escalated earlier this month. But the lingering prospects of higher U.S. interest rates have kept prices below the $2,000 ceiling last breached in May.
Investor focus is also on the U.S. personal consumption expenditure price index due later in the day for cues on what to expect from the U.S. Federal Reserve’s policy meeting next week.
In other metals, spot silver steadied at $22.84 U.S, per ounce, platinum rose 0.5% to $904.71 and palladium added 0.2% to $1,135.65.
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