Gold holds four-day gain on haven demand and dovish Fed comments

Gold held a four-day rally as haven demand added support amid an escalation in Russia’s war with Ukraine, while traders assessed prospects for further easing by the Federal Reserve.

Bullion traded near $2,670 an ounce — on track for its best week since April — after Ukraine said Russia launched a “new” kind of ballistic missile at the city of Dnipro in an alarming signal to Kyiv’s Western backers. Heightened geopolitical tensions tend to drive investors to safety assets, such as gold.

Traders were also weighing comments from Fed Bank of Chicago President Austan Goolsbee, who said he sees interest rates moving “a fair bit lower” and expressed confidence inflation is easing toward the central bank’s target. Lower rates typically benefit bullion as it doesn’t pay interest.

The precious metal has gained almost 30% this year, supported by healthy central bank buying, increasing haven demand and the Fed’s cutting cycle. There are widespread expectations for fresh records in 2025, with Goldman Sachs Group Inc. and UBS Group AG both issuing bullish outlooks in recent days.

Haven demand helped outweigh the headwind of the rebounding dollar after mixed US labor data. A stronger greenback makes commodities priced in the currency more expensive for most buyers.

Spot gold was flat at $2,673.11 an ounce at 8:01 a.m. in Singapore, on track for a 4% weekly increase. The Bloomberg Dollar Spot Index was little changed, after two days of gains. Silver steadied below $31 an ounce, while platinum and palladium were also flat.