The gold prices advance for the fourth consecutive session on Thursday, boosted by the safe haven demand in a context of escalation of tensions in the conflict between Russia and Ukrainewhile investors waited for the statements by the monetary leaders of the United States Federal Reserve on the outlook for interest rates.
Spot gold added 0.3%, to $2,657.40 per ounce, reaching its highest level since November 11. US gold futures gained 0.3% to $2,659.90.
The escalation of the war in Ukraine and “Subsequent fears of a broader regional conflict involving growing threats of nuclear weapons are driving up prices.”said Kyle Rodda, financial markets analyst at Capital.com.
Ukraine fired a series of British Storm Shadow cruise missiles at Russia on Wednesday, just a day after firing US missiles. The United States vetoed a UN Security Council resolution calling for a ceasefire in Gaza, aggravating current geopolitical tensions.
He Gold’s appeal is reinforced by geopolitical tensionseconomic risks and a low interest rate environment. He US dollar fell 0.1%, making gold more affordable for international buyers.
The key to what will happen to the dollar lies with the Fed
Investors will be attentive to the statements of several Fed officials during the day, as well as the initial data on jobless claims.
On Wednesday, two Fed governors offered opposing perspectives on US monetary policy: expressed concern about persistent inflation, while the other about continued progress in reducing price pressures. “It’s hard to short the dollar right now,” as investors are also increasingly weighing the possibility that the Federal Reserve won’t cut rates next month, said market analyst Matt Simpson at City Index.
According to CME’s Fedwatch tool, markets see a 56% chance of a 25 basis point US rate cut in December.
A possible rate reduction in December It could be a headwind for gold, but its long-term prospects remain bullish, Rodda said. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.36% to 875.39 metric tons on Wednesday. On Thursday, spot silver rose 1.1% to $31.21 an ounce, platinum added 0.3% to $964.53, and palladium rose 0.7% to $1,027. 86 dollars.
What happens with Bitcoin?
Bitcoin hit an all-time high of $97,902 on Thursday, boosted by news that Trump’s social media company was in talks to buy cryptocurrency trading company Bakkt.
Source: Ambito
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