Gold prices were headed for their best week in a year on Friday, supported by safe-haven demand amid further escalations in the Russia-Ukraine war, while investors assessed the outlook for US interest rate cuts.

Spot gold rose 0.7% to $2,688.70 per ounce as of 0306 GMT.

Bullion was up nearly 5% for the week so far, its best week since early October 2023.

US gold futures gained 0.6% to $2,691.00. Gold is drawing support from Bitcoin’s surge towards $100,000, escalations between Russia and Ukraine and the risk of further conflict, said Marex analyst Edward Meir.

Bitcoin has surged over 40% since the US election this month, driven by expectations that President-elect Trump will ease cryptocurrency regulations.

Russia launched a hypersonic missile at Dnipro on Thursday, escalating the war, after the US and UK approved Kyiv’s use of advanced Western weapons to strike Russian territory.

Gold’s appeal is bolstered by geopolitical tensions, economic risks and a low interest rate environment.

Meanwhile, the Chicago Federal Reserve President on Thursday reiterated his support for further US interest rate cuts and his openness to slowing them down.

Markets are pricing in a 55.9% chance of a 25-basis-point cut at the Fed’s December meeting, per the CME Fedwatch tool.

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Investors will monitor the US consumer sentiment (final) data, due at 0300 GMT, along with remarks from Fed Governor Michelle Bowman, for further clues on rate cut outlook.

Gold’s near-term movement could be influenced by next week’s key US data releases, such as the preliminary GDP and core PCE, with prices expected to target $2,690-$2,715 based on recent trends, said Nicholas Frappell, global head of institutional markets at ABC Refinery.

On Friday, spot silver rose 0.6% to $30.97 per ounce, platinum added 0.6% to $966.14 and palladium was up 1.1% to $1,040.58.

All three metals were on track for a weekly rise.