Gold gains anew

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BENGALURU- Gold prices rose for the fourth straight session on Thursday, driven by safe-haven demand amid escalating tensions in the Russia-Ukraine conflict, while investors awaited remarks from Federal Reserve policymakers on the interest rate outlook.

Spot gold was up 0.3 percent at $2,657.41 per ounce hitting its highest since Nov. 11.

US gold futures rose 0.3 percent to $2,660.00.

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“The escalation in the war between Russia and Ukraine and subsequent fears of a broader regional conflict that involves increasing threats of nuclear weapons are pushing up (gold) prices,” said Kyle Rodda, financial market analyst at Capital.com.

Ukraine fired a series of British Storm Shadow cruise missiles into Russia on Wednesday, marking the latest use of Western weapons on Russian targets, just a day after firing US missiles.

Meanwhile, the United States vetoed a UN Security Council resolution calling for a ceasefire in Gaza, adding to ongoing geopolitical tensions.

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

The US dollar dropped over 0.1 percent on Thursday, making gold more affordable for international buyers.

Meanwhile, investors will monitor remarks from several Fed officials later in the day, while keeping an eye on initial US jobless claims data, due at 1330 GMT.

Markets see a 56 percent chance of a 25-basis-point US rate cut in December, per the CME Fedwatch tool. A potential December rate reduction could be a headwindfor gold, but the long-term outlook for the metal remains bullish, Capital.com’s Rodda said.

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