Gold is on track to secure its eighth consecutive weekly gain, buoyed by rising demand for the safe-haven asset in response to geopolitical and trade uncertainties. While the precious metal dipped slightly below $2,928 per ounce on Friday, it remains up more than 1% for the week. If it holds, this will mark the longest streak of weekly increases since 2020.
Data reveals that global gold-backed exchange-traded fund (ETF) holdings have surged to their highest levels since January 2024, with over 16 tons added this week alone. The influx is on pace to become the largest since 2023 in terms of tonnage, reflecting growing investor confidence in gold amid turbulent global conditions.
Thursday saw gold reach a new high, driven by concerns that former President Donald Trump’s potential shift in U.S. foreign policy could undermine support for Ukraine. Trump is preparing to meet Russian President Vladimir Putin in an effort to negotiate an end to the war, a move that could leave Ukraine and its European allies sidelined.
Gold’s performance this year has been impressive, with the metal climbing 27% in 2024, as anxiety over Trump’s disruptive geopolitical and trade policies grows. In response, Goldman Sachs raised its year-end gold price forecast to $3,100 per ounce, citing central-bank buying as a key factor supporting the bullish outlook.
Gold’s appeal has also been strengthened by the U.S. dollar’s weakness, with the dollar index set for a third consecutive weekly loss. A weaker dollar typically boosts the attractiveness of gold for buyers using other currencies.
Meanwhile, U.S. Treasury Secretary Scott Bessent addressed rumors that the government might revalue its gold holdings, dismissing the speculation as unfounded. A report last week indicated that revaluation was not being seriously considered by Trump’s economic advisors.
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