Gold Surpasses $4,300 Threshold, Heads for Largest Weekly Gain Since 2008
Gold has exceeded the $4,300 threshold this Friday and is heading towards its largest weekly gain since 2008, as investors increasingly turn to the metal as a safe-haven asset amidst geopolitical and economic tensions, and increased bets on a decrease in American interest rates. At 11:02 GMT, spot gold rose by 0.2% to $4,332.17 per ounce, after earlier reaching an unprecedented level of $4,378.69. December contracts for American gold jumped by 1% to $4,345.90. Gold is on track to record an 8% weekly gain. Earlier in the session, gold was on track to achieve its largest gain since September 2008, when the collapse of Lehman Brothers triggered the global financial crisis. "With expectations of lower interest rates, geopolitical risks, and persistent concerns for the banking sector, the environment remains very favorable to gold," said Alexander Zumpfe, a precious metals trader at Heraeus Metals in Germany. He added: "A short-term stabilization is possible given the excessive appeal for buying." Spot silver fell by 0.4% to $54 per ounce, after earlier reaching its highest historical level at $54.47, following the trend of gold. The decline in banking stocks has put downward pressure on global stocks, as signs of credit tension in American regional banks have worried investors and driven them towards safe-haven assets.
