PT Rifan Financindo Berjangka – Gold Holds Gain as Russia’s Nuclear Shift Fans Demand for Havens
Gold held a two-day climb, with rising demand for haven assets following an escalation of tensions in Russia’s war against Ukraine.
Bullion traded above $2,638 an ounce after advancing by more than 2% over the first two days of the week. On Tuesday, gold gained along with US Treasuries after President Vladimir Putin approved an updated nuclear doctrine that expanded conditions for using atomic weapons and Ukraine made its first strike with American missiles in Russia. Investors typically seek safety in the precious metal at times of geopolitical and economic uncertainty.
Gold’s strength this week has also been assisted by a slide in the US dollar, which has rolled back some of the strong gains made by the currency in the wake of Donald Trump’s victory in the presidential election.
Bullion has rallied by more than a quarter this year, with gains underpinned by central-bank buying, the Federal Reserve’s pivot to monetary easing, and geopolitical tensions in Europe as well as the Middle East. Goldman Sachs Group Inc. has backed the metal to extend its advance to $3,000 an ounce next year.
Spot gold was 0.2% higher at $2,638.51 an ounce at 8:35 a.m. in Singapore. The Bloomberg Dollar Spot Index eased 0.1%, after falling almost 1% over the previous three sessions. Silver rose, palladium fell, and platinum steadied.
Source: Bloomberg
Gold hits 1-week high as Russia-Ukraine tensions boost rush to safety
Gold prices climbed for a second consecutive session on Tuesday, hitting a one-week high as mounting Russia-Ukraine tensions sparked a rush for safe-haven assets, while investors awaited key signals on the Federal Reserve’s interest rate plans.
Spot gold rose 0.6% to $2,628.76 per ounce by 01:42 p.m. ET (1842 GMT), hitting its highest level since Nov.11. U.S. gold futures settled 0.6% higher at $2,631 per ounce.
On Monday, gold jumped 2%, marking its biggest one-day rise since mid-August and rebounding sharply from a two-month low hit last week.
Gold’s allure is bolstered by geopolitical tensions, economic risks and a low interest rate environment.
Multiple Fed officials are scheduled to speak this week, which could offer further insights about the rate-cut path.
Traders currently see a 63% chance of a 25-basis-point cut in December.
Geopolitical uncertainty, central bank buying, and swelling deficits in the United States and other western nations are further supporting gold, the bank said.
Also supporting bullion was the dollar’s pullback that comes after a strong rally last week to a one-year high fuelled by the Trump trade euphoria. A weaker dollar makes gold more appealing to buyers in other currencies.
Among other metals, spot silver added 0.1% to $31.17, hitting a one-week high earlier in the session. Platinum gained 0.5% to $971.66. PT Rifan Financindo Berjangka.
Source : Reuters