Khaberni - Gold recorded a new high by exceeding the $4,300 level on Friday, heading to achieve the best weekly performance in 17 years after indicators of weakness in American regional banks, global trade tensions, and increased bets on a cut in US interest rates drove investors towards the safe haven.
By 06:15 GMT, gold in spot transactions rose 0.8% to $4359.31 an ounce after having reached a record level at $4378.69 earlier. The metal has risen 8.6% this week, recording its best weekly performance since September 2008.
And the US futures for Gold for December delivery rose by 1.6% to $4372.10.
Silver in spot transactions rose by 0.1% to $54.26 an ounce and is heading to achieve weekly gains of 8%. It had earlier in the session recorded a record level of $54.35, following the path of gold.
Tim Water, Chief Market Analyst at K.C.M Trade said, "Gold might reach $4500 sooner than expected, but that may depend largely on how long the concerns regarding trade between the United States and China and the (American) government shutdown persist."
Market sentiment was affected by the trade tensions 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 lift export restrictions.
On Thursday, Federal Reserve Board member Christopher Waller expressed his support for another interest rate cut due to labor market concerns. Investors expect a cut of 25 basis points at the council's meeting on October 29 and 30, and another cut in December.
Gold's gains, which do not yield an income, have surpassed 65% since the beginning of the year driven by geopolitical tension, strong speculations about interest rate cuts, purchases by central banks, decreased reliance on the dollar, and strong inflows into exchange-traded funds.
On another note, American President Donald Trump and Russian President Vladimir Putin have agreed yesterday to hold another summit on the war in Ukraine.
Western countries continued to pressure Russia regarding its oil sales, and the UK imposed sanctions on two major Russian oil companies.
As for other precious metals, platinum decreased by 0.7% to $1699.45, and palladium fell by 0.2% to $1611.24. Both metals are heading to achieve weekly gains.
