The precious metal is on course for a fifth straight weekly gain, the longest winning streak since January 2023. That’s despite the fact that the dollar and bond yields have risen strongly while expectations for rate cuts in 2024 have slumped.

“It is increasingly clear that normal reaction functions have been abandoned with gold,” said Ole Hansen, head of commodity strategy at Saxo Bank AS. Bullion typically rises when the dollar and rates slip, and vice versa.

Hansen said the current drivers behind gold’s 16% rally this year is a combination of geopolitical risks related to the Russia-Ukraine war and the Middle East; strong retail demand in China; central bank demand; rising debt-to-GDP ratios among major economies; and a potential reacceleration in inflation outlook.

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Spot gold rose 0.6% at $2,393.41 an ounce at 12:04 p.m. in New York. The Bloomberg Dollar Spot Index rose 0.1%. Silver and palladium rose, while platinum fell.