Gold gains on softer dollar, widening Russia-Ukraine tensions

Gold prices roseate for a 3rd consecutive league to a one-week precocious connected Wednesday, driven by a softer dollar and escalating Russia-Ukraine tensions that raised the request for safe-haven assets.

Spot golden added 0.32% to $2,640.19 per ounce by 0323 GMT, its highest since Nov. 11. U.S. golden futures climbed 0.5% to $2,643.70.

The U.S. dollar rally paused aft hitting a one-year precocious past week, making bullion much appealing to buyers holding different currencies.

Russian President Vladimir Putin lowered the threshold for a atomic onslaught successful effect to a broader scope of accepted attacks, days aft reports said Washington had allowed Ukraine to usage U.S.-made weapons to onslaught heavy into Russia.

"The U.S. authorization and Russia's response, which could pb to a tactical atomic weapon, is contributing to marketplace uncertainty, boosting safe-haven assets similar gold... On the upside, the cardinal absorption to ticker is astir $2,700," said Ilya Spivak, caput of planetary macro, Tastylive.

Elsewhere, respective Federal Reserve officials this week are expected to perchance shed airy connected the U.S. complaint chopped trajectory.

Currently, traders spot a 58.9% accidental of a 25-basis-points chopped successful December. Recent beardown information and U.S. President-elect Donald Trump's projected tariffs person pointed to rates remaining higher for longer.

The marketplace is adjusting its expectations for the Fed's cuts adjacent twelvemonth arsenic ostentation is becoming a bigger concern, which could beryllium antagonistic for gold, Spivak added.

Higher rates trim the entreaty of non-yielding gold.

Meanwhile, Kansas City Fed President Jeffrey Schmid said that it remains uncertain however acold rates tin fall, though the archetypal reductions made by the U.S. cardinal slope are a ballot of assurance that ostentation is returning to its 2% target.

Spot metallic was dependable astatine 31.22 per ounce, platinum added 0.1% to $975.10 astatine $973.90 and palladium level astatine $1,035.43.

Follow Emirates 24|7 connected Google News.