🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

Gold prices climb on safe-haven bid amid rising Russia-Ukraine tensions

Published 11/19/2024, 11:50 PM
Updated 11/20/2024, 04:50 PM
XAU/USD
-
GC
-
HG
-
SI
-
PL
-
MCU
-

Investing.com-- Gold prices rose on Wednesday, gaining more ground as safe haven demand was buoyed by heightened tensions over Russia and Ukraine, although resilience in the dollar limited overall gains.

The yellow metal rebounded sharply from two-month lows this week, taking some relief from mild weakness in the dollar. But the greenback steadied from recent losses on Wednesday, limiting gold’s gains. 

Spot gold rose 0.7% to $2,650.19 an ounce, while gold futures expiring in December rose 0.9% to $2,653.65 an ounce by 4:46 p.m. ET (21:46 GMT). 

Russia-Ukraine war in focus after Moscow’s nuclear threat 

Increased tensions between Russia and Ukraine were the biggest point of support for gold, as safe haven demand increased after Moscow lowered the threshold for nuclear retaliation over Ukrainian attacks. 

The move was in response to the U.S. reportedly authorizing the use of long-range missiles by Ukraine against Russia, which Moscow warned could mark a dire escalation in the conflict. 

Still, Russian Foreign Minister Sergei Lavrov said the country would do all it could to avoid nuclear war. But hostilities with Ukraine persisted, as both countries launched debilitating attacks against each other over the past week. 

Dollar steadies, limits gold upside 

But strength in the dollar limited gold’s recovery this week, especially as the greenback steadied from three days of losses on Wednesday. The dollar also remained close to a one-year high hit last week. 

Markets remained uncertain over just what a Donald Trump presidency will entail for the U.S. economy and interest rates, amid some doubts over whether the Federal Reserve will cut rates in December.

Traders were seen pricing in a 61% chance for a 25 basis point cut, and a 39% chance rates will remain unchanged, CME Fedwatch showed. 

Gold had plummeted from record highs after Trump’s election victory earlier in November, although this trade now appeared to be cooling.

Other precious metals also stalled on Wednesday after some gains this week. Platinum futures  fell 1.3% at $966.35 an ounce, while silver futures fell 1% to $30.935 an ounce. 

Among industrial metals, benchmark copper futures on the London Metal Exchange decline 0.3% to $9,091.00 a ton, while December copper futures rose 0.2% to $4.1520 a pound.

Copper was also nursing steep losses in recent weeks, especially as recent stimulus measures from top importer China underwhelmed. 

Markets took middling cues from China keeping its benchmark loan prime rate unchanged on Wednesday. 

(Ambar Warrick contributed to this article)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.