By Daksh Grover
(Reuters) – Gold prices rose for a third consecutive session to a one-week high on Wednesday, driven by a softer dollar and escalating Russia-Ukraine tensions that raised the demand for safe-haven assets.
Spot gold added 0.32% to $2,640.19 per ounce by 0323 GMT, its highest since Nov. 11. U.S. gold futures climbed 0.5% to $2,643.70.
Russian President Vladimir Putin lowered the threshold for a nuclear strike in response to a broader range of conventional attacks, days after reports said Washington had allowed Ukraine to use U.S.-made weapons to strike deep into Russia.
“The U.S. authorization and Russia’s response, which could lead to a tactical nuclear weapon, is contributing to market uncertainty, boosting safe-haven assets like gold… On the upside, the key resistance to watch is around $2,700,” said Ilya Spivak, head of global macro, Tastylive.
Elsewhere, several Federal Reserve officials this week are expected to potentially shed light on the U.S. rate cut trajectory.
Currently, traders see a 58.9% chance of a 25-basis-points cut in December. Recent strong data and U.S. President-elect Donald Trump’s proposed tariffs have pointed to rates remaining higher for longer.
The market is adjusting its expectations for the Fed’s cuts next year as inflation is becoming a bigger concern, which could be negative for gold, Spivak added.
Higher rates reduce the appeal of non-yielding gold.
Meanwhile, Kansas City Fed President Jeffrey Schmid said that it remains uncertain how far rates can fall, though the initial reductions made by the U.S. central bank are a vote of confidence that inflation is returning to its 2% target.
Spot silver was steady at 31.22 per ounce, platinum added 0.1% to $975.10 at $973.90 and palladium flat at $1,035.43.
(Reporting by Ashitha Shivaprasad and Daksh Grover in Bengaluru; editing by Alan Barona and Sumana Nandy)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.
