Gold Climbs Higher on Geopolitical Fears

21 Nov 2024 , 10:27 AM

Due to investors seeking more clarity on the U.S. interest rate outlook and safe-haven demand amid the escalating Russia-Ukraine confrontation, gold prices edged higher Thursday for the fourth straight day.

Spot gold was up 0.2% at $2,654.50 an ounce. U.S. gold futures increased to $2,657.10, up 0.2%.

A day after firing U.S. ATACMS missiles, Ukraine launched a barrage of British Storm Shadow cruise missiles into Russia, the most recent Western weapon it has been authorised to employ against Russian targets.

In the meantime, the United States added to the existing geopolitical tensions by vetoing a U.N. Security Council resolution that called for a ceasefire in Gaza.

According to the CME Fedwatch tool, the market currently sees a 54% chance of a 25 basis point rate drop in December.

Two governors of the Federal Reserve presented opposing views on U.S. monetary policy: one expressed worry about persistent inflation, while the other maintained hope for further advancements in easing price pressures.

Initial jobless claims data, which is scheduled at 1330 GMT, and statements made by a number of Fed officials later in the day will be keenly watched by traders.

The largest gold-backed exchange-traded fund in the world, SPDR Gold Trust, said that its holdings increased by 0.36% to 875.39 tonnes on Wednesday.

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