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.
Gold’s allure is bolstered by geopolitical tensions, economic risks and a low interest rate environment.
“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.
Among other metals, spot silver added 0.1 per cent to $31.17, hitting a one-week high earlier in the session. Platinum gained 0.5 per cent to $971.66. Palladium rose 2.8 per cent to $1,032.99, hitting a near two-week high after rising more than 5 per cent on Monday.
Source: Economictimes
