Gold hovered near the key psychological level of $1,800 on Friday and headed for its best weekly performance in more than three months, driven by concerns over uneven economic recovery and geopolitical tensions.
Spot gold edged up 0.2 percent to $1,795.83 per ounce, after having hit a high of $1,805.16 earlier in the day. U.S. gold futures were up 0.1 percent at $1,797.75.
The dollar was on track for a weekly decline and the yield on benchmark 10-year Treasury notes traded at 1.34 percent, down from a two-week high of 1.375 percent, as investors awaited Fed chief Jerome Powell’s speech later in the day at the Jackson Hole symposium for clues on stimulus tapering.
Meanwhile, with the war in Afghanistan now in a new, deadlier, and more destructive phase, there are some concerns about further escalation there.
Evacuation flights from Afghanistan resumed with new urgency after Thursday’s bombings near Kabul’s international airport killed at least 95 Afghans and 13 U.S. troops, in the deadliest day for U.S. forces in Afghanistan since August 2011.
While condemning the attack, U.S. President Joe Biden said, “We will hunt you down and make you pay.”