Gold notched a new high above $4,300 an ounce yesterday and was poised for its best week in more than 17 years, as signs of weakness in US regional banks, global trade frictions, and further rate-cut hopes pushed investors to the safe-haven metal.
Spot gold rose 0.9pc to $4,362.39 per ounce, as of 0439 GMT, after scaling another record high of $4,378.69 earlier. US gold futures for December delivery jumped 1.7 per cent to $4,375.50, Reuters reported.
Bullion has risen about 8.6pc this week and is headed for its best week since September 2008, notching a record high in each session.
Spot silver rose 0.3pc to $54.41 per ounce, set for an 8.2pc weekly gain. Earlier in the session, prices reached a record high of $54.35, tracking the rally in gold and a short squeeze in the spot market.
“(For gold) $4,500 could arrive as a sooner-than-expected target, but much may depend upon how long concerns about US-China trade and the government shutdown linger over the market for,” said KCM Trade chief market analyst Tim Waterer.
China levelled fresh accusations against the US of causing panic over its rare earth controls, while rejecting calls to reverse export curbs.
Meanwhile, US Federal Reserve Governor Christopher Waller voiced support for another rate cut due to labour market concerns.
Platinum fell 0.4pc to $1,706.45 and palladium rose 0.3pc to $1,618.95. Both metals were headed for weekly gains.
&uuid=(email))