Gold exceeds $4,300…the best weekly performance since 2008

Gold continued to rise today, exceeding the level of $4,300, on its way to achieving its best weekly performance in 17 years, as escalating trade tension between the United States and China fueled uncertainty in the market, and hopes for lowering US interest rates reinforced the gains of the precious metal.

By 00:40 GMT, gold in instant transactions rose 0.9 percent to $4,364.79 per ounce, after hitting a record level of $4,378.69.

The metal has risen 8.7 percent so far this week, recording its best weekly performance since September 2008.

US gold futures for December delivery increased 1.6 percent to reach $4,373.20.

Silver rose in spot transactions 0.5 percent to $53.97 per ounce after reaching a record level of $54.35 earlier, tracking gold, and heading for weekly gains.

The dollar index fell to its lowest levels in a week, making gold priced in the US currency less expensive for holders of other currencies.

The gains of gold, which does not generate a return, have exceeded 65 percent since the beginning of the year, driven by geopolitical tension, strong speculation about lowering interest rates, purchases from central banks, declining dependence on the dollar, and strong flows of exchange-traded funds.

Market sentiment was affected by the trade tension between the United States and China, as Beijing accused Washington of causing panic related to Chinese controls on rare earth metals and rejected calls to abolish restrictions imposed on exports.

Yesterday, Thursday, Federal Reserve Board member Christopher Waller expressed his support for another cut in interest rates due to labor market concerns.

Investors expect a 25 basis point cut at the council meeting on October 29-30, and another cut in December.

On the other hand, US President Donald Trump and Russian President Vladimir Putin agreed yesterday to hold another summit regarding the war in Ukraine.

Western countries continued to pressure Russia regarding its oil sales, and Britain imposed sanctions on two of Russia’s major oil companies.

As for other precious metals, platinum rose 0.4 percent, reaching $1,719.55, and palladium gained 0.6 percent, reaching $1,622.67.

Both metals are heading for weekly gains.