Gold rose to a two-week high on Friday, holding above the $1,500 an ounce psychological level, as weak U.S. economic data spurred expectations for another interest rate cut by the Federal Reserve, while palladium scaled a fresh peak.
Spot gold XAU= hit its highest since Oct. 10 at $1,506.76 earlier in the session and was up 0.1% to $1,505.40 per ounce at 0805 GMT. The metal has gained 1.1% this week, heading for its best week in five.
U.S. gold futures GCv1 were up 0.2% at $1,508.20 per ounce.
The metal breached the $1,500 per ounce ceiling for the first time in more than six years on Aug. 7.
New orders for key U.S.-made capital goods fell more than expected in September and shipments also declined, a sign that business investment remains soft amid the fallout from the U.S.-China trade war, data showed on Thursday.
The Fed has cut interest rates twice this year and investors see another cut on the cards as the economy struggles with the headwinds from the trade war and slowing global growth.
“Gold still has a number of geopolitical uncertainties and a high chance of a Fed rate cut at the end of this month to get support from, but considering the Sino-U.S. trade tensions are easing, any fresh positive development will weigh on prices,” said Argonaut Securities analyst Helen Lau.
Gold is considered a safer investment during times of political and financial uncertainty.
In Europe, Prime Minister Boris Johnson called for a general election on Dec. 12 to break Britain’s Brexit impasse, conceding he will not meet his “do or die” deadline to leave the European Union next week.
Asian shares inched higher, tracking small gains in global markets, as positive earnings helped offset economic growth concerns, while sterling weakened as the prospect of a British election added fresh uncertainty to Brexit.
“In the near term, we see three triggers for gold, the trade spat, Brexit and the Fed’s interest rate cut,” said Jigar Trivedi, a commodities analyst at Mumbai-based Anand Rathi Shares & Stock Brokers.
“Any news on these triggers will lead to the breach of the $1,485-$1,510 technical level.”
Elsewhere, palladium XPD= was flat at $1,778.39 an ounce, having earlier hit an all-time high of $1,785.50.
Concerns over a supply crunch for the autocatalyst metal have helped lift prices by more than 41% this year, despite a weakening auto sector.
- 5 feared dead, 15 injured in accident on Accra-Tema motorway
- #FixTheCountry agitators have no leaders – Barker-Vormawor
- Wesley Girls’ SHS ‘no fasting” policy, strictly for health reasons – Old students
- Ramadan: UDS Dean of Education condemns Wesley Girls SHS management
- Why I rejected over ¢700k bribe – Anti-galamsey taskforce member
- Ghana’s 4x100m men’s relay team set to pitch camp in Europe ahead of Olympics
- Companies continue to export rosewood to China despite ban – Inusah Fuseini
- Over 200 police personnel deployed to enforce mining directives across Ghana
- Claims of fasting affecting health unfounded – Islamic Medical Association, Ghana
- Ramadan: Exercise restraint and circumspection in your comments – Peace Council to all stakeholders
Don’t depend on your children when you retire, its a money mistake – EDC boss
#FixTheCountry: Any Ghanaian who has a problem with campaign must have citizenship revoked – Sam George
Ecobank and TANOE WomanRising organise business clinic for women-owned and women-focused businesses
Ecobank shareholders to get 55 pesewas per share as dividend
Bolt launches its car-sharing service Bolt Drive
2 teenagers jailed for life after killing Italian police officer
Nigerian model Adetutu OJ unmasks married man who offered N500k for sex
Blunt and Blay: Finding ‘silence’ for Auntie Ohene from uncle Sam’s ‘noise’
Far from silence, we suffer a culture of noise – Elizabeth Ohene
Some celebrities give hope while others give excuses for #FixTheCountry
Seatbelt has saved me 3 times – Alban Bagbin
Nigeria kidnappers free 27 college students
Zulu Kingship: Royals and rebels fight for throne
Election 2020: EC saved Ghana $90m as compared to 2016 election – Bossman Asare
Pupils in Adaklu admonished to utilise ultramodern ICT lab to develop skill