By Ashitha Shivaprasad and Anjana Anil
(Reuters) – Gold prices rose above $2,400 per ounce to an all-time high on Friday, heading for their fourth week of gains, as growing tensions in the Middle East prompted investors to seek refuge in the safe-haven assets.
Spot gold climbed 2.2% to $2,424.32 per ounce as of 10:56 a.m. ET (1456 GMT) after hitting a record high of $2,419.79. Prices were up 4% for the week.
U.S. gold futures gained 2.9% to $2,442.30.
Taking cues from gold’s upward momentum, platinum rose above the key psychological level of $1,000 per ounce to its highest level in nearly four months.
“The positive factors for gold outweigh the negative. The heightened tensions in Middle East is the main driver for gold’s recent surge,” said Chris Gaffney, president of world markets at EverBank.
A reportedly imminent attack by Iran on Israel is a real and viable threat, the White House said, giving no details about possible timing, and reiterating that the U.S. takes its commitments to defend Israel seriously.
“Gold continues to go from strength to strength as we are witnessing fear of missing out on clear display,” Ole Hansen, head of commodity strategy at Saxo Bank, said in a note.
“Fear of missing an ongoing rally creates a strong buy-on-dip mentality, in the process reducing the risk of recently established longs being challenged.”
Gold’s recent surge arrived despite traders dialing back bets for an early interest rate cut from the Federal Reserve.
Thursday’s U.S. Producer Price Index (PPI) came in softer than expected, a day after March’s hot Consumer Price Index (CPI).
“Gold has pushed back against some data that should have typically been negative. It will be somewhat healthy to see a correction in the bulls market, but the trend will continue to be positive,” Gaffney added.
Spot silver rose 4% to $29.60 per ounce, its highest level since early 2021. Platinum rose 2.2% to $1,000.80 and palladium firmed 2.7% to $1,075.00.
All three metals were poised for weekly gains.
(Reporting by Ashitha Shivaprasad, Brijesh Patel and Anjana Anil in Bengaluru; Editing by Vijay Kishore and Alan Barona)
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