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Gold prices hit record highs on safe-haven demand

Friday,   12-Apr-2024   08:23 AM (IST)

Gold prices scaled to a record high on Friday as geopolitical tensions continued to boost demand for the safe-haven metal, while strong economic data failed to dampen bullion's allure. Spot gold was up 0.6% at $2,386.38 per ounce, as of 0111 GMT. Bullion hit a record high of 2,389.29 earlier in the session. U.S. gold futures gained 1.3% to $2,403.90 per ounce. The ranks of Federal Reserve officials saying there is no rush to cut interest rates continue to grow, with still-too-hot-for-comfort U.S. inflation a rising concern. Expectations for how much policy easing the Federal Reserve can deliver are falling rapidly as one strong economic report after another suggests inflation could come creeping back if the U.S. central bank lowers borrowing costs prematurely. Higher interest rates reduce the appeal of holding non-yielding gold. The European Central Bank held interest rates at a record high, but signalled it could start cutting as soon as June. Russia, Germany and Britain urged countries in the Middle East to show restraint and Israel said it was preparing to "meet all it s security needs" in a region on edge over an Iranian threat to strike Israel. Diversified miner Sibanye Stillwater's, opens new tab planned restructuring of its South African gold operations could cut 4,022 jobs, the South African company said, with unions vowing to fight the layoffs. Spot silver rose 0.7% to $28.66 per ounce, platinum gained 0.7% to $986.80 and palladium was up 0.6% at $1,052.61.