Gold Climbs on Weaker Dollar and Safe-Haven Demand

Credit: Reuters

On Friday, Gold prices were poised for a weekly increase driven by a softer dollar and heightened safe-haven demand due to escalating Middle East tensions, despite the U.S. Federal Reserve indicating a reluctance for early rate cuts this year.

Spot gold rose 0.8% to $2,040.69 per ounce, on track for a 1.4% weekly rise. U.S. gold futures settled 0.9% higher at $2,049.4.

The dollar index edged down 0.1%, heading for its first weekly decline in nearly two months, making gold less expensive for overseas buyers. The precious metals market experienced safe-haven buying amid ongoing uncertainties, despite elevated interest rates.