BENGALURU- Gold prices rose for a third consecutive session to a one-week high on Wednesday, driven by a softer dollar and escalating Russia-Ukraine tensions that raised the demand for safe-haven assets.
Spot gold added 0.32 percent to $2,640.19 per ounce, its highest since Nov. 11. US gold futures climbed 0.5 percent to $2,643.70.
The US dollar rally paused after hitting a one-year high last week, making bullion more appealing to buyers holding other currencies.
Russian President Vladimir Putin lowered the threshold for a nuclear strike in response to a broader range of conventional attacks, days after reports said Washington had allowed Ukraine to use US made weapons to strike deep into Russia.
“The US authorization and Russia’s response, which could lead to a tactical nuclear weapon, is contributing to market uncertainty, boosting safe-haven assets like gold… On the upside, the key resistance to watch is around $2,700,” said Ilya Spivak, head of global macro, Tastylive. Elsewhere, several Federal Reserve officials this week are expected to potentially shed light on the US rate cut trajectory.
