LONDON: Gold prices edged higher on Friday, with the crisis engulfing Turkey’s lira boosting demand for bullion as a safe investment while at the same time bolstering the dollar, making gold more expensive for buyers with other currencies.

Investors rushed to the safety of the greenback as the lira collapsed as much as 23 per cent to a record low, Russia’s rouble crumbled to its lowest in more than two years and the euro and pound touched their weakest levels in a year.

With the turmoil in Turkey spreading to other markets, gold – traditionally used as a safe investment in times of uncertainty – also saw some extra interest, Saxo Bank analyst Ole Hansen said.

“There is a battle going on between the strengthening dollar and some safe-haven demand emerging from the contagion risk following the collapse of the lira.”

Silver was down 0.1pc at $15.39 an ounce, platinum was 0.1pc lower at $829.49 an ounce and palladium gained 0.4pc to $910.80 an ounce.

All three metals were on track to end the week largely flat.

Published in Dawn, August 11th, 2018