Gold futures were skittering lower early Friday as investors watched for the latest reading on inflation from the world’s No. 1 economy, a day after bullion touched the highest intraday levels since September 2020, as Russia commenced a long-feared invasion into Ukraine.
April gold
GCJ22,
GC00,
was trading $19.90, or 1%, lower at $1,906.40 an ounce, following a 0.8% gain for bullion on Thursday. The metal had touched on intraday high on that session at $1,976.50 — the highest for a most-active contract since September 2020, according to Dow Jones Market Data.
For the week, gold was headed for a gain of 0.4%, which would mark the fourth weekly rise for the precious metal in a row and its longest win streak since December.
Investors are awaiting U.S. data, with January’s personal-consumption expenditures index, the Federal Reserve’s preferred measure of pricing pressures, due at 8:30 a.m. ET.
Despite the day’s pullback, gold enthusiasts see gold holding a compelling case for prospective investors in a diversified portfolio, particularly as the clash in Eastern Europe continues.
On Friday, Russian forces closed in the capital of Kyiv and Ukranian President Volodymyr Zelensky vowed not to surrender the city, which was coming under fire from Moscow.
“With the very real prospect of the situation in Ukraine deteriorating, the case for gold, as the ultimate haven asset that has endured through countless wars over hundreds of years, is very strong,” wrote Rupert Rowling, market analyst at Kinesis Money.
“Indeed a climb up to $2,000 an ounce can’t be ruled out with suddenly all the concerns about gold’s lack of yield against the backdrop of an environment where rising interest rates are forecast is thrown to one side with the primary emotion being fear and concern for what is happening in Ukraine,” he wrote.
This post was originally published on Market Watch
