Gold hits 1-week high as Russia-Ukraine tensions boost rush to safety
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 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 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.
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.
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.
Among other metals, spot silver added 0.1% to $31.17, hitting a one-week high earlier in the session. Platinum gained 0.5% to $971.66.
Source : Reuters
