Gold futures on the COMEX division of the New York Mercantile Exchange increased on Friday due to the weakening of the U.S. dollar.
The December delivery contract, which was the most active for gold, went up by $13.90 or 0.70%, closing at $1,994.40 per ounce.
Investors turned to gold as a safe haven amidst the anticipated ground invasion of Gaza by Israel. If the conflict in the Middle East escalates, market analysts predict that gold prices will exceed $2,000.
In a speech given at the Shadow Open Market Committee, Loretta Mester, the President of the Cleveland Fed, stated that she believes the central bank is inclined towards raising interest rates once again.
Mester said, “Regardless of the decision made at our next meeting, if the economy evolves as expected, we are likely approaching a point where the funds rate remains steady. We will gather more information on economic and financial developments and assess the impact of the tightening of financial conditions that has already occurred.”
In his speech on Thursday, Federal Reserve Chair Jerome Powell didn’t rule out the possibility of further rate hikes.
For December delivery, the price of silver increased by 47.30 cents or 2.05%, closing at $23.504 per ounce. Platinum for January delivery rose by $6.90 or 0.77%, reaching $905.10 per ounce.
