REUTERS: 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 per cent at $2,657.41 per ounce, as of 0238 GMT, hitting its highest since Nov. 11.
US gold futures rose 0.3 per cent to $2,660.00.
“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 per cent 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.
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 per cent 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 per cent chance of a 25 basis point US rate cut in December, per the CME Fedwatch tool.
A potential December rate reduction could be a headwind for gold, but the long-term outlook for the metal remains bullish, Capital.com’s Rodda said.
Two Fed governors offered contrasting perspectives on US monetary policy on Wednesday, with one raising concerns about stubborn inflation while the other remained optimistic about continued progress in reducing price pressures.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.36 per cent to 875.39 tonnes on Wednesday.
On Thursday, spot silver gained 0.8 per cent to $31.11 per ounce, platinum added 0.4 per cent to $965.30, and palladium advanced 0.7 per cent to $1,027.84.
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