Gold extends record rally above US$4,300, eyes best weekly gain since 2008
Gold extended its record-breaking rally on Friday. NSTP/ROHANIS SHUKRI
By Reuters
NEW YORK: Gold extended its record-breaking rally on Friday, climbing above US$4,300, poised for their best weekly performance in 17 years, as escalating US-China trade tensions fuelled market uncertainty, with US rate cut hopes adding to the momentum.
Spot gold rose 0.9 per cent to US$4,364.79 per ounce, as of 0040 GMT, after reaching a record high of US$4,378.69. Bullion was up 8.7 per cent for the week so far, marking its best weekly performance since September 2008.
US gold futures for December delivery gained 1.6 per cent to US$4,373.20. Spot silver climbed 0.5 per cent to US$53.97 per ounce, after reaching a record high of US$54.35 earlier, tracking gold's rally and a short squeeze in the spot market, and remained on track for weekly gains.
The US dollar index fell to over one week low, making greenback-priced bullion less expensive.
Non-yielding bullion has gained over 65 per cent year-to-date, driven by geopolitical tensions, aggressive rate-cut bets, central bank buying, de-dollarisation and robust ETF inflows.
Market sentiment was further influenced by US-China trade tensions as China accused the US of causing panic over its rare earth controls, while rejecting calls to reverse export curbs.
Federal Reserve Governor Christopher Waller on Thursday voiced support for another rate cut due to labor market concerns, with investors expecting a 25-basis-point reduction at the Fed's Oct. 29-30 meeting and another in December.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 1.18 per cent to 1,034.62 tonnes on Thursday from Wednesday, hitting highest level since June 2022.
US President Donald Trump and Russian President Vladimir Putin agreed on Thursday to another summit on the war in Ukraine.
Western nations continued to pressure Russia over its oil sales, with Britain imposing sanctions on major Russian oil firms.
The US budget deficit shrank by US$41 billion to US$1.775 trillion in the 2025 fiscal year, the Treasury Department said on Thursday.
Elsewhere, platinum gained 0.4 per cent to US$1,719.55 and palladium was up 0.6 per cent at US$1,622.67. Both these metals were headed for weekly gain.
Source: gold-extends-record-rally-above-us4300-eyes-best-weekly-gain-2008
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