Gold rose in instant transactions by 1 percent, in Friday’s session, to $2,720.25 per ounce. Gold increased this week by about 2.4 percent.
US gold futures also reached $2,730 upon settlement.
Alexander Zumpfy, a precious metals trader at German Heraeus Metals, said: “As the conflict worsens, especially after the Hezbollah group announced the escalation of the war with Israel, investors are turning to gold, which is one of the traditional safe assets,” according to what Reuters reported.
The vow of Israel, Hamas and Hezbollah to continue fighting in Gaza and Lebanon has dashed hopes that the killing of Yahya Sinwar, head of the Hamas political bureau, would accelerate the end of the escalating war in the Middle East.
Increasing geopolitical tension prompts investors to look for safe assets such as… gold To avoid risk and due to fears of global market instability.
“Adding to the momentum, concerns about the US presidential election and expectations of more accommodative monetary policies fueled the further rise,” Zombfie said.
Gold exceeded its record level several times during the current year due to geopolitical tension and expectations that major central banks will continue monetary easing, which led to prices rising by more than 30 percent since the beginning of the year in the best annual growth since 1979, according to data from the London Stock Exchange Group.
Low interest rates enhance the attractiveness of owning non-yielding gold.
Sources told Reuters that the European Central Bank is likely to cut interest rates again in December unless economic data prompts it not to do so.
Investors see a 92 percent chance that the Federal Reserve will cut interest rates in November.
As for other precious metals, it rose Silver In spot transactions, six percent to $33.58 per ounce. Platinum increased 2.4 percent to $1,016.25, and palladium rose about four percent to $1,083.25.
