Spot gold rose 0.5% to $1,993.69 per ounce by 1:47 p.m. ET (1747 GMT) and gained 0.7% for the week. U.S. gold futures settled 0.1% higher at $1,998.50.
Gold has been holding nearly all of its recent gains as the market remains extremely concerned about a conflagration in the Middle East, said Tai Wong, a New York-based independent metals trader.
Israeli forces carried out their biggest Gaza ground attack in their 20 day old war with Hamas overnight as Arab nations condemned the bombardment. Safe-haven bullion has gained around 8%, or more than $140, since the start of the war on Oct. 7.
“If there is an escalation in the conflict, there are prospects of additional safe-haven buying … Gold investors will also be watching the outlook for U.S. Treasury yields,” said Daniel Ghali, commodity strategist at TD Securities. [US/]
The Federal Open Market Committee meeting is due on Oct. 31-Nov. 1, with traders expecting a 98% chance of the U.S. central bank leaving rates unchanged.
“In our view the Fed will most likely end its tightening campaign and this is already priced into the gold market,” Ghali added. Data showed U.S. consumer spending increased more than expected in September, keeping it on a higher growth path heading into the fourth quarter.
In the physical market, purchases of gold during a major festival in India improved this week, albeit at a slower pace compared with last year, as domestic prices were sitting at near-record highs. [GOL/AS]
Spot silver was up 0.1% to $22.86 per ounce and was set for a weekly fall.
Platinum was flat at $900.24 and palladium lost 1.3% to $1,118.39, with both metals on track for weekly gains.
Download The Economic Times News App to get Daily Market Updates & Live Business News.
Top Trending Stocks: Sensex Today Live, SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price