Gold heads for recording weekly gains as Middle East tensions loom

Gold prices rose today, Friday, and are on track to record their first weekly rise in three weeks, after widespread dollar weakness and Middle East tensions increased the appeal of the precious metal.

According to Reuters, by 0411 GMT, gold in spot transactions rose 0.1% to $2,025.7 per ounce. It rose 0.7 percent since the beginning of the week. US gold futures also increased 0.2% to $2,035.3 per ounce.

“There is a fair amount of actual buying, especially from central banks, and the fact that the dollar hasn’t really moved gives gold an element of support as well,” Marks analyst Edward Meir said.

He continued, “Uncertainty and geopolitical tensions also help provide some support for gold.”

Meanwhile, the dollar is on track to record its first weekly decline in about two months, making bullion priced in it less expensive for buyers in other currencies.

As for other precious metals, platinum fell in spot transactions 0.4% to $898.05 per ounce, and palladium fell 0.2% to $965.69, while silver rose 0.2% to $22.78 per ounce, but it fell 2.6% this week so far.