Closing the trading session on October 27, the world spot gold price increased by 21 USD to 2,005 USD per ounce. During the session, the price at one point touched 2,009 USD - the highest since May.
In total for the week, prices increased by 1.4%, recording the third consecutive weekly increase. Yesterday's trading volume spiked after the Israeli military spokesman announced that its air force and ground forces would increase their offensive in the Gaza Strip. Previously, the Israeli Air Force launched many intense air strikes targeting this area.
World gold prices soared during the October 27 session. Screenshots
"No one wants to sell gold this weekend. You don't know what the price will be when it reopens," Tai Wong - a precious metals trader commented on Reuters.
Gold prices have increased 8%, equivalent to nearly 150 USD, since the conflict between Israel and Hamas forces broke out on October 7.
"The more notable story here is the prospect of haven gold buying, if tensions in the Middle East escalate," said Daniel Ghali - commodity strategist at TD Securities.
Investors are also interested in the US Federal Reserve's (Fed) policy meeting next week. The country's cooling inflation could help the Fed continue to keep interest rates unchanged in the next few months, even as consumption remains vibrant.
"Gold surpassing 2,000 USD could be a price signal towards two peaks around 2,050 USD established in March 2022 and May 2023," said Ole Hansen - Director of Commodity Strategy at Saxo Bank.
On the physical market, holiday gold buying activity in India improved this week. Gold demand in China - the world's leading consumer - also increased.
Ha Thu (according to Kitco, Reuters)
