The gold market is heading towards its strongest week in a year. The gold prices rose to a record high in global markets on Friday (November 22), mainly due to tensions over the Russia-Ukraine war and fears of a US interest rate cut. These factors make gold attractive as a safe-haven investment to investors worldwide, resulting in increased demand for gold.
Spot gold rose by 0.7 percent on Friday afternoon and stood at $2,687.87 per ounce, Reuters reported. Gold prices rose “nearly 5 percent” this week, the best weekly gain since October last year.
Analysts say tensions in the Russia-Ukraine war and fears of a US interest rate cut are boosting demand for gold. Besides, the instability of the global situation is making gold popular among traders and investors as a safe investment.
Experts believe that the current situation may push gold prices higher if the crisis worsens.
Meanwhile, investors are encouraged to invest more in gold due to the fear of more volatility in the market in the future, which may continue the upward trend in prices.
