Safe-haven gold on track for weekly gain

Gold prices steadied on Friday but were headed for a weekly gain, driven by safe-haven demand due to escalating geopolitical concerns, while palladium lingered near a 10-month high.

FUNDAMENTALS

* Spot gold was little changed at $2,733.63 per ounce by 00:18 GMT. Prices hit a record high of $2,758.37 on Wednesday and were up 0.5% so far in the week.

* U.S. gold futures fell 0.1% to $2,746.3.

* Israel’s military said on Thursday it killed a Hamas commander who took part in the Oct. 7, 2023, assault on southern Israel and also worked for the U.N. aid agency in the Gaza Strip. * Uncertainty was also high ahead of U.S. Election Day on Nov. 5, with polls showing a tight race between Donald Trump and Kamala Harris.
* A widening U.S. fiscal deficit is a growing concern, Scope Ratings said.
* Gold is seen as a safe asset during economic and political uncertainty. It also thrives in a low interest rate environment.
* New applications for U.S. unemployment aid unexpectedly fell last week, but the number of people collecting benefits in mid-October was the highest in nearly three years, indicating it was becoming harder for those losing jobs to land new positions.

* Markets are pricing in a 96.9% chance for a cut of 25 basis points at the U.S. Federal Reserve‘s November meeting, according to CME’s FedWatch Tool.

* The United States asked the Group of Seven allies to consider sanctions on Russian palladium and titanium, Bloomberg News reported.

* Russia’s Nornickel is the world’s largest palladium producer.

* Palladium rose 0.4% to $1,162, having surged as much as 9.4% in the previous session to its highest level since December 2023. It is set to record its best week in seven.

* Russia is in talks with other BRICS members about creating an international precious metals exchange to ensure fair pricing and trade growth, the country’s Finance Minister Anton Siluanov said in a statement on Thursday.

* Spot silver fell 0.2% to $33.63 per ounce, Platinum rose 0.04% at $1,026.70.

DATA/EVENTS (GMT) 0500 Japan Leading Indicator Revised Aug 0800 Germany Ifo Business Climate New Oct 0800 Germany Ifo Curr Conditions New Oct 0800 Germany Ifo Expectations New Oct 1000 France Unemp Class-A SA Sept 1230 US Durable Goods Sept 1400 US U Mich Sentiment Final Oct.