Gold gains for third straight day on escalating Russia-Ukraine tensions
Bullion hit highest level since Nov. 11
Dollar strength a bit of a headwind for gold -analyst
Putin issues warning to US with new nuclear doctrine
Updates with prices in U.S. afternoon hours
By Sherin Elizabeth Varghese and Anjana Anil
Nov 20 (Reuters) -Gold prices climbed for a third consecutive session to mark a one-week high on Wednesday, as investors sought refuge in the safe-haven metal amid mounting geopolitical unease fuelled by escalating Russia-Ukraine tensions.
Spot gold XAU= was up 0.7% at $2,650.49 per ounce as of 12:52 p.m. EST (1751 GMT), after hitting its highest level since Nov. 11 earlier in the session. U.S. gold futures GCv1 gained 0.9% at $2,654.00.
Geopolitical tensions intensified as Russian President Vladimir Putin lowered the threshold for a nuclear strikes in response to a broader range of conventional attacks.
"Clearly that's sparked safe-haven interest," said Peter Grant, vice president and senior metals strategist at Zaner Metals.
"I do see the inverse correlation has re-exerted itself in recent weeks and see dollar strength as a bit of a headwind for gold moving forward."
The dollar rebounded, reviving the 'Trump Trade' rally after a three-day slide, limiting gains in dollar-priced gold by making it costlier for overseas buyers. Last week, gold saw its steepest weekly drop in over three years as the dollar index hit a one-year high. USD/
Investor attention is also fixed on several Federal Reserve officials who are set to speak this week. Market expectations for a December rate cut have declined significantly, with odds now at 55.7%, down from 82.5% just a week ago. FEDWATCH
"A December pause in Fed rate cuts could subdue the gold price in the short term, but the easing monetary cycle, macroeconomic and geopolitical uncertainty, and healthy physical demand will maintain positive gold market sentiment," ANZ said in a note. GOL/AS
Brokerages see U.S. President-elect Donald Trump's proposed tariffs to fuel volatility across global markets, spurring inflationary pressures and, in turn, limiting the scope for major central banks to ease monetary policy.
Bullion is considered a hedge against inflation, but higher rates reduce the appeal of holding the non-yielding asset.
Among other metals, spot silver XAG= fell 0.6% to $31.03 per ounce, platinum XPT= shed 1.6% to $958.79 and palladium XPD= lost 1.5% to $1,019.23.
Spot gold price in USD per oz https://reut.rs/48XKgWu
Reporting by Sherin Elizabeth Varghese and Anjana Anil in Bengaluru; Editing by Maju Samuel and Krishna Chandra Eluri
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