COMEX gold rose 2 percent intraday to $4,663.03 per ounce on Friday as geopolitical tensions and U.S. fiscal concerns drove safe-haven demand. The rally follows a 0.7 percent gain on Thursday and comes as the U.S. national debt crossed $40 trillion.
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COMEX gold jumps 2% to $4,663 as safe-haven demand surges
COMEX gold rose 2 percent intraday to $4,663.03 per ounce on Friday, extending a rally driven by safe-haven demand as geopolitical tensions persist.
Gold futures advanced 0.7 percent to $4,585 an ounce on Thursday, according to market data, while the U.S. dollar index held at 98.90 and the 10-year Treasury yield climbed to 4.71 percent.
President Donald Trump's threat of "economic D-Day" on Iran as talks to reopen the Strait of Hormuz remain stalled has intensified flows into precious metals. The U.S. national debt surpassing $40 trillion for the first time has also raised fiscal sustainability concerns, supporting gold demand. WTI crude futures rose nearly 3 percent to about $88.15 a barrel on the same geopolitical tensions.
Gold's rally comes as Federal Reserve minutes from the July FOMC meeting showed growing pressure for higher rates, with inflation running above the 2 percent target for more than five years. The next Fed meeting and any escalation in Middle East tensions will determine whether gold can hold above $4,600.
The 2 percent intraday surge marks one of the sharpest single-session moves for gold in recent weeks. The metal has climbed steadily as investors weigh elevated Treasury yields and potential Fed rate hikes against geopolitical risk and fiscal concerns. The dollar index, which tracks the greenback against a basket of major currencies, ticked up 0.1 percent to 98.90 — a level that remains historically soft and supportive of bullion.
Gold's performance compares favorably to other safe-haven assets. Bitcoin, which rallied above $72,000 on Thursday, has also attracted risk-on flows, but gold's 2 percent gain outpaced the cryptocurrency's move. Silver and other precious metals have similarly benefited from the flight to safety, though gold remains the primary beneficiary of the current uncertainty.
The $40 trillion national debt milestone has become a focal point for gold investors. Treasury Secretary Scott Bessent's announcement that the government would "at least double" its buybacks of longer-term debt failed to calm bond markets, with the 30-year yield hitting its highest level in nearly two decades on Tuesday. This fiscal backdrop, combined with stalled Middle East diplomacy, creates a supportive environment for gold.
Looking ahead, the Federal Reserve's next policy decision will be critical. Minutes from the July FOMC meeting revealed three dissents favoring a quarter-point rate hike, and Chair Kevin Warsh is reportedly considering reducing meeting frequency to six per year. Higher rates typically pressure gold, but the current geopolitical and fiscal environment may override that headwind.
This article is for informational purposes only and does not constitute investment advice.
