By Ashitha Shivaprasad
(Reuters) – Gold prices eased on Friday but are still on track for a weekly gain, as investors seek the safe-haven metal amid rising geopolitical tensions. Palladium, on the other hand, is poised for its strongest week in over a month.
Gold Prices and Market Trends
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 have gained 0.4% so far this week. U.S. gold futures also fell 0.2% to $2,742.80.
Geopolitical Events Affecting Market
An Israeli strike killed at least 17 people at a school in central Gaza, while U.S. and Israeli negotiators gather in Doha to prepare for renewed talks on a Gaza ceasefire deal. Other factors, such as the upcoming U.S. presidential election, are also impacting market dynamics.
Expert Insights and Predictions
Julia Khandoshko, CEO at European broker Mind Money, noted, “These elections are more dynamic and unpredictable than many previous ones. Such volatility creates additional interest in gold.” She also predicted, “In the next three months, gold may reach $2,800, and from the annual perspective, it can surpass the psychologically important $3,000 barrier.”
Palladium and Supply Concerns
Palladium dipped 0.4% to $1,152.50, but rose 7% for the week. The U.S. has asked the Group of Seven allies to consider sanctions on Russian palladium and titanium, as Russia’s Nornickel is the world’s largest palladium producer. This move comes amid concerns about disruptions to Russian supply.
Market Trends for Silver and Platinum
Spot silver fell 0.3% to $33.62, after reaching its highest level since 2012 earlier in the week. Meanwhile, platinum lost 0.7% at $1,019.45.
Additional Market Commentary
Paul Wong, market strategist at Sprott Asset Management, highlighted, “Silver has started playing catch up to gold. It benefits from its dual role of monetary value and as an industrial metal with growth driven by the breakneck growth of photovoltaics.”
(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Rashmi Aich)
Insight: The current geopolitical tensions, particularly in the Middle East, are contributing to the increased demand for gold as a safe-haven asset. Additionally, the uncertainty surrounding the upcoming U.S. presidential election is adding volatility to the market, leading investors to turn to precious metals for stability.
Insight: The potential sanctions on Russian palladium and titanium by the Group of Seven allies highlight the importance of supply chain disruptions in the precious metals market. Such disruptions could have a significant impact on pricing and availability, leading to fluctuations in the market.
Insight: The growth of the photovoltaics industry is driving demand for silver as an industrial metal, contributing to its recent price uptick. This dual role of silver as both a monetary asset and an industrial commodity underscores its versatility and appeal to investors.
