Gold set for best week in a year amid escalating Ukraine conflict

Gold bars

Gold prices headed for their best week in a year on Friday, supported by safe-haven demand amid further escalation in the Russia-Ukraine war, while investors assessed the outlook for US interest rate cuts.

At 0306 GMT, spot gold prices edged up 0.7% to $2,688.70 per ounce. Bullion has gained nearly 5% this week, its best week since early October 2023.

Gold futures grew 0.6% to $2,691 per ounce.

Gold is drawing support from Bitcoin’s surge towards $100,000, escalations between Russia and Ukraine, and the risk of further conflict, said Marex analyst Edward Meir.

Bitcoin has surged over 40% since the US election this month, driven by expectations that President-elect Trump will ease cryptocurrency regulations.

Russia launched a hypersonic missile at Dnipro on Thursday, escalating the war, after the US and UK approved Kyiv’s use of advanced Western weapons to strike Russian territory.

Gold’s appeal is bolstered by geopolitical tensions, economic risks and a low interest rate environment.

Silver futures for September delivery went up 0.22% to $30.91.

Investors are anticipating the monthly US job data, as the world's largest economy is expected to add 188,000 jobs in June, compared to 272,000 in the previous month.