Gold gains for third consecutive day on escalating Russia-Ukraine tensions
Gold prices climbed for a third consecutive session to mark a one-week high on Wednesday, as investors sought refuge in the safe-haven metal amid mounting geopolitical unease fuelled by escalating Russia-Ukraine tensions.
Spot gold was up 0.6% at $2,647.43 per ounce as of 01:42 p.m. EST (1842 GMT), after hitting its highest level since Nov. 11 earlier in the session. U.S. gold futures settled 0.8% higher at $2,651.70.
Geopolitical tensions intensified as Russian President Vladimir Putin lowered the threshold for a nuclear strikes in response to a broader range of conventional attacks.
The dollar rebounded, reviving the "Trump Trade" rally after a three-day slide, limiting gains in dollar-priced gold by making it costlier for overseas buyers. Last week, gold saw its steepest weekly drop in over three years as the dollar index hit a one-year high.
Investor attention is also fixed on several Federal Reserve officials who are set to speak this week. Market expectations for a December rate cut have declined significantly, with odds now at 55.7%, down from 82.5% just a week ago.
Brokerages see U.S. President-elect Donald Trump's proposed tariffs to fuel volatility across global markets, spurring inflationary pressures and, in turn, limiting the scope for major central banks to ease monetary policy.
Bullion is considered a hedge against inflation, but higher rates reduce the appeal of holding the non-yielding asset.
Among other metals, spot silver fell 0.9% to $30.92 per ounce, platinum shed 1.8% to $956.87 and palladium lost 1.8% to $1,016.73.
Source : Reuters
