By Fadi Al Kurdi

Gold prices traded down on Friday but are headed for a third consecutive weekly gain. Strong safe-haven demand driven by heightened tensions in the Middle East led the bullion to break record highs over the week. This ongoing instability is likely to continue weighing on investor sentiment and supporting gold’s appeal.

In Eastern Europe, hopes for diplomatic progress between Russia and Ukraine provided some relief. However, renewed Russian strikes on civilian infrastructure have tempered optimism, keeping markets on alert.

Meanwhile, this week’s Federal Reserve cautious tone may limit gold’s upside. Persistent trade tensions could stoke inflationary pressures, and prompt the Fed to adopt a hawkish stance. However, signs of an economic slowdown may encourage a looser policy stance, providing renewed support for gold.

Al Kurdi is founder CEO FFA Kings