Gold prices rose slightly on the European market on Friday, extending its gains for a second day, making third weekly gain in a row as strong demand for the metal continues as a safe haven amid risk aversion and the fall of most global stock markets.
Gold prices rose 0.2% to 08:10 GMT to trade at $ 1,226.84 an ounce from the opening level of $ 1,225.67 and recorded a high of $ 1,229.50 and a low of $ 1,223.10.
Yellow metal ended yesterday’s trading up 0.3%, its first gain in three days, after most of the global equity markets, especially US stocks on Wall Street, fell.
This week, gold prices soared 0.7% in the third consecutive weekly gain, as strong investment demand for the metal continued as a safe haven amid rising market risk.
Most of Asia’s stock markets fell, especially after China’s economy, the world’s second-largest economy, grew in the third quarter at its slowest pace since 2009. European stocks also fell as tensions between the EU and Italy surged over the 2019 budget.
On Wall Street, stocks fell broadly on Thursday near their three-month low on fears of faster US interest rate increases in the coming period, as well as tensions between the United States and Saudi Arabia over the fate of journalist Jamal Khashoggi.
This week’s gains may be the lowest for the past three weeks as the dollar rallied against a basket of currencies, supported by the latest meeting of the Federal Reserve, which boosted the likelihood of continued monetary policy tightening and raised US interest rates for the fourth time this year.
Gold holdings at SPDR Gold Trust The world’s largest gold-backed fund was unchanged yesterday for a third straight day, remaining at 748.76 metric tons, the highest since August 31.