Gold soared on Friday, recovering some of the losses incurred over the previous two sessions, as political concerns enhanced safety demand on the yellow metal.
The precious metal traded $1318.47 an ounce, yet still set for its fourth straight weekly decline on mounting expectations the Federal Reserve will hike interest rates next week.
Investors focused today on the political concerns between Britain and Russia after the former decided to expel 23 Russian diplomats over a nerve toxin attack on a Russian former double agent in Britain.
In the U.S., “special Counsel Robert Mueller has subpoenaed the Trump Organization for documents, including some related to Russia, the New York Times reported on Thursday,” according to Reuters.
Political uncertainty about Trump’s administration in addition to a potential global trade war due to U.S. tariffs have gave some support to gold.
Asian shares moved lower on Friday as the previously mentioned political fears triggered risk-off mode and encourage safety demand.
Next week, eyes will focus on the two-day Fed policy meeting as policymakers are highly anticipated to hike the borrowing cost by 25 basis points.
A rate increase by the Fed may put pressure on gold since the metal does not provide interest to its holders.
The dollar index retreated to 90.05 after gaining on Thursday, where it has experienced volatile movements this week.