Gold Heads for Sixth Weekly Gain on Risk-Off Tone and ETF Flows

Core Insights - Gold prices are nearing record highs, supported by geopolitical tensions, inflows into bullion-backed ETFs, and a risk-off sentiment in broader markets [1] - Gold has increased approximately 44% this year, driven by central bank demand and anticipated interest rate cuts by the Federal Reserve [2] - The Federal Reserve's recent rate cuts have created mixed signals regarding future monetary policy, with inflation data providing some flexibility for further rate reductions [3] Gold Market Dynamics - Gold for immediate delivery is trading around $3,779 per ounce, reflecting a 2.5% increase this week, with a peak above $3,791 [1] - Holdings in bullion-backed ETFs are at their highest level since 2022, indicating strong investor interest [2] - The price of gold jewelry in India is expected to decline by over 25% during the upcoming festival season due to high prices, as consumers look for cheaper alternatives [4] Other Precious Metals - Platinum prices have risen above $1,586 per ounce, marking the highest level since 2013, while palladium is on track for a weekly increase of over 10% [5]