Gold hits 1-week high as Russia-Ukraine tensions boost rush to safety
Ukraine hits Russia with US missiles for first time
Silver at 1-week peak, palladium at a near 2-week high
Several Fed officials due to speak this week
Market sees 63% chance of 25 bps US rate cut in December
Adds settlement price and update prices as of 1842 GMT
By Sherin Elizabeth Varghese
Nov 19 (Reuters) -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 XAU= 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 GCv1 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.
"We think that the overnight reports on Russia changing its nuclear doctrine following Ukraine's first long-range missile strike on Russian territory has led to some safe-haven flows in gold," said Daniel Ghali, commodity strategist at TD Securities.
"Barring another consolidation in prices, speculative investors just don't have enough dry powder in their war chest for gold to resume its upward trajectory at this juncture."
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. FEDWATCH
"Since the arguments in favour of gold have not diminished, the lower price level is apparently leading to buying interest," Commerzbank analysts noted.
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. USD/
Among other metals, spot silver XAG= added 0.1% to $31.17, hitting a one-week high earlier in the session. Platinum XPT= gained 0.5% to $971.66.
Palladium XPD= rose 2.8% to $1,032.99, hitting a near two-week high after rising more than 5% on Monday.
Spot gold price in USD per oz https://reut.rs/3AJMpIF
Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Maju Samuel, Shounak Dasgupta and Mohammed Safi Shamsi
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
