Investing.com — Gold prices rose on Tuesday, extending a recovery from two-month lows as the dollar retreated from recent highs, while heightened tensions between Russia and Ukraine also fueled demand for safe havens.
The yellow metal rose sharply from a two-month low this week as a rally in risk-driven assets in the wake of Donald Trump’s victory in the 2024 presidential election also appeared to fade.
rose 0.8% to $2,632.81 per ounce, while the December expiration rose 0.8% to $2,636.35 per ounce at 4:39 PM ET (2139 GMT). Spot prices rose by almost 2% on Monday.
Gold is benefiting from the demand for safe havens due to tensions between Russia and Ukraine
According to media reports over the weekend, the US had authorized the use of long-range missiles by Ukraine to attack targets deeper into Russian territory.
Russia warned of serious consequences if Ukraine carried out such attacks, as Moscow would continue to carry out missile attacks on several Ukrainian areas.
Any potential move by Ukraine to attack Russia with long-range missiles could mark a serious escalation of the long-running conflict, with gold seeing some safe haven demand on the idea.
Dollar, Yields Fall Amid Rate Cuts in December
Gold and broader metals markets also received some support from dollar weakness and Treasury yields, as investors bet US yields will continue to fall in the near term.
The stock fell from a one-year high in the past two sessions, falling after hitting a more than five-month high last week.
The dollar’s weakness came as strong inflation data last week, combined with less dovish signals from the Federal Reserve, only slightly deterred bets that the Fed would cut rates in December.
Traders were pricing in a 55.7% chance of a 25 basis point cut in December, and a 44.3% chance will remain unchanged, according to .
traded lower, adding 0.6% to $980.25 per ounce, while rising 0.3% to $31.328 per ounce.
Among industrial metals, copper prices also saw some relief from recent dollar weakness. But the red metal posted steep losses last month amid continued concerns about slowing demand in top importer China.
The benchmark on the London Metal Exchange rose 0.3% to $9,122 per tonne, while in December it rose 1.2% to $4.1673 per pound.
The People’s Bank of China will decide on its benchmark on Wednesday.
(Ambar Warrick contributed to this article)
