Gold prices eased slightly below $2,928 per ounce on Friday but remain over 1% higher for the week, positioning the precious metal for an eighth consecutive weekly advance. If achieved, this would mark the longest winning streak for gold since 2020. According to a Bloomberg analysis, global exchange-traded fund (ETF) holdings of gold have surged to their highest levels since January 2024, with over 16 tons added this week alone. This puts the metal on track for its largest weekly influx since 2023 in terms of tonnage.
The rally in gold was fueled earlier this week by concerns over geopolitical risks, particularly the potential for President Donald Trump to scale back U.S. support for Ukraine. On Thursday, the price of gold reached a new high amid these concerns, as Trump prepared for a meeting with Russian President Vladimir Putin to negotiate a potential peace deal, a move that could exclude Kyiv and its European allies from the discussions.
Gold has continued to break records in 2024, rising 27% year-to-date, driven by fears surrounding Trump’s trade and foreign policy approach. Goldman Sachs recently raised its year-end price target for gold to $3,100 per ounce, citing central bank buying as a key factor in driving the rally.
The U.S. dollar’s weaker performance this week has also provided additional support for gold. The dollar is on track for its third consecutive weekly decline, making gold more attractive to buyers holding other currencies.
In other developments, market participants are also closely monitoring comments from U.S. Treasury Secretary Scott Bessent, who dismissed speculation that the U.S. government might revalue its gold holdings. A Bloomberg report last week revealed that such discussions were not a priority among Trump’s senior economic advisors.
As of 1:36 p.m. in Singapore, spot gold was trading 0.4% lower at $2,927.85 per ounce, while silver, palladium, and platinum all experienced declines.
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