By Ashitha Shivaprasad
(Reuters) – Gold prices eased on Friday but were still on track for a weekly gain, as investors sought the safe-haven metal amid rising geopolitical tensions. Palladium was also poised for its strongest week in over a month.
Gold and Palladium Performance
Spot gold slipped 0.2% to $2,730.09 per ounce, as of 01:55 GMT. Prices had reached a record high of $2,758.37 on Wednesday and were up 0.4% for the week so far. U.S. gold futures fell 0.2% to $2,742.80.
Geopolitical Tensions and Market Impact
The recent Israeli strike that killed at least 17 people at a school in central Gaza and the upcoming talks for a Gaza ceasefire deal between U.S. and Israeli negotiators in Doha have added to the geopolitical uncertainty driving investors towards gold.
Impact of U.S. Election on Gold Prices
With less than two weeks to go before the Nov. 5 election and polls showing a tight race to the White House, the volatile nature of the elections is creating additional interest in gold, according to Julia Khandoshko, CEO at European broker Mind Money. Khandoshko predicts that gold may reach $2,800 in the next three months and could surpass the psychologically important $3,000 barrier from an annual perspective.
Palladium Market and Russian Supply Concerns
Palladium dipped 0.4% to $1,152.50 but rose 7% for the week. Bloomberg News reported that the U.S. has asked the Group of Seven allies to consider sanctions on Russian palladium and titanium, with Russia’s Nornickel being the world’s largest palladium producer. This possibility of disruptions to Russian supply, coupled with struggles in maintaining market output, adds further pressure on the palladium market, as highlighted by Daniel Hynes, senior commodity strategist at ANZ.
Other Precious Metals
Spot silver fell 0.3% to $33.62 after hitting its highest level since 2012 earlier in the week. Paul Wong, market strategist at Sprott Asset Management, noted that silver’s performance in catching up to gold is driven by its dual role of monetary value and industrial metal usage, especially in the growth of photovoltaics. Platinum lost 0.7% at $1,019.45.
(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Rashmi Aich)
Insight:
The article highlights the impact of geopolitical tensions, the upcoming U.S. election, and potential disruptions to Russian palladium supply on the prices of precious metals like gold, palladium, silver, and platinum. In times of uncertainty, investors often turn to safe-haven assets like gold, which is reflected in the price movements mentioned in the article. Additionally, the dual role of silver as both a monetary asset and an industrial metal underscores its potential for growth, especially in sectors like photovoltaics, as pointed out by market strategist Paul Wong.
