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Gold climbs for the second week in a row as inflation boosts demand for safe haven
Gold fell slightly on Thursday, but prices ended the week with gains for the second consecutive week as the Ukraine crisis and widening inflationary pressures raised the attractiveness of the safe-haven metal.
Spot gold fell 0.29% to $1,971 an ounce, while US gold futures fell 0.49% to $1,974, but rose 1.51% during the week as markets closed on Friday.
“The political risk premium by escalating the war in Ukraine is building up again, driving all prices up in public goods and this is really creating that inflation environment,” said Stephen Innes, managing partner at SPI Asset Management.
"Gold at the moment is mainly supported by what we heard from the Fed last period as well as the US inflation data," said Brian Lane, managing director at GoldSilver Central dealer.
Non-yielding bullion is a safe store of value in times of uncertainty and an inflation hedge.
Spot silver fell 0.62% to $25.56 an ounce, platinum rose 0.29% to $989.29, and palladium rose 2.13% to $2364.18.
