PRECIOUS METALS - Gold hits record high on weak dollar, Middle East tensions
Istanbul, September 20 (Hibya) - Spot gold prices hit a record high on Friday as a weak dollar, expectations of more U.S. interest rate cuts and tensions in the Middle East more than offset muted physical demand in Asia.
Spot gold was up 1.2 percent at $2,617.60 per ounce after hitting a record high of $2,617.89. U.S. gold futures rose 1.1 percent to $2,643.
Non-yielding gold is up 27 percent so far this year, heading for its biggest annual rise since 2010. It got the latest boost from the start of the Federal Reserve’s easing cycle on Wednesday.
According to analysts, gold could hit $3,000 per ounce in a year amid geopolitical risks and investors hedging against a slowing economy.
However, from a technical point of view, gold’s Relative Strength Index moved into “overbought” territory on Friday, at 70.9.
Meanwhile, demand from the physical sector in Asia remains light, and gold is trading there at a discount to the London price. Top consumer China did not import any gold from a major trading hub, Switzerland, in August for the first time in 3 1/2 years.
In other metals, silver gained 2.0 percent to $31.39, platinum rose 0.5 percent to $993.85 and palladium was steady at $1,080.75.