Global risks buoy gold

Gold prices firmed on Thursday as the bullion remained in demand in the face of ongoing geopolitical risks, while palladium jumped 8 per cent to a near 10-month peak on fears of supply sanctions on top-producer Russia, reports Reuters.
Spot gold rose 0.8 per cent to $2,739.09 per ounce by 1150 GMT after pulling back from the record high of $2,758.37 on Wednesday. U.S. gold futures gained 0.8 per cent to $2,751.70.
"The fact that gold has rebounded from yesterday's lows is a positive signal confirming the strong massive interest that investors have currently in bullion," said Kinesis Money market analyst Carlo Alberto De Casa.
"We have the U.S. election in just 10 days, a very complicated geopolitical scenario. In this situation, investors are betting on gold," Carlo said, adding that massive demand from central banks is supporting prices.
Gold, used as a safe store of value during times of uncertainty, has hit multiple record highs and surged over 33 per cent so far this year. Expectations of further monetary policy easing by major central banks have also boosted the non-yielding bullion's appeal. "Further, concerns around rising U.S. fiscal debt outlook is strengthening the investment case for gold. We think that the recent rally can fade once the market focus shifts to prospects of a gradual easing cycle by the Fed rather than deeper cuts," ANZ said in a note.
In other metals, palladium jumped 8 per cent to $1,142.75, its highest level since December 2023. The U.S. asked the Group of Seven allies to consider sanctions on Russian palladium and titanium, Bloomberg News reported.
"Considering that Russia accounts for about 40 per cent of palladium mine supply, such a decision would tighten the market and see prices rising considerably," UBS analyst Giovanni Staunovo said.
"With a larger producer scaling back production next year, we see the market balanced to slightly under-supplied in 2025, with prices trading around $1,000/oz"
Spot silver firmed 1.1 per cent to $34.10, having hit its highest since late 2012 touched on Oct. 22. Platinum rose 2 per cent to $1,036.10.