Investing.com — Gold prices rose on Wednesday, gaining further momentum as rising tensions over Russia and Ukraine boosted safe-haven demand, although a resilient dollar limited overall gains. increased.
The yellow metal has seen some relief from the dollar's gradual weakness this week, rebounding sharply from two-month lows. However, on Wednesday, the US dollar strengthened from its recent decline, limiting gold's gains.
By 11:35 p.m. ET (4:35 p.m. Japan time), December deadline rose 0.2% to $2,636.28 an ounce and rose 0.3% to $2,639.50 an ounce.
Russia-Ukraine war comes into focus after Moscow's nuclear threat
Rising tensions between Russia and Ukraine were Kim's biggest supporter, as demand for safe havens rose after Russia lowered its threshold for nuclear retaliation against attacks on Ukraine.
The move was in response to the United States reportedly authorizing Ukraine to use long-range missiles against Russia, which Moscow warned could signal a disastrous escalation of the conflict.
Still, Russian Foreign Minister Sergei Lavrov said Russia would do everything possible to avoid nuclear war. But hostilities with Ukraine remain, with both countries launching attacks to undermine each other last week.
Dollar stable, gold upside limited
However, limited gold recovery was strong this week, especially as the US dollar stabilized from Wednesday's three-day decline. The dollar remained close to its highest level in a year last week.
Markets remain uncertain about how President Donald Trump's inauguration will affect the U.S. economy and interest rates, with some questions remaining over whether the Federal Reserve will cut interest rates in December. The situation continues.
Traders are pricing in a 61% chance of a 25 basis point (bp) rate cut, with a 39% chance of keeping rates unchanged.
Gold plummeted from record highs after Trump's election victory in early November, but the trade now appears to have cooled.
Other precious metals also stalled on Wednesday after rising slightly this week. It stabilized at $979.25 per ounce but was flat at $31.260 per ounce.
In industrial metals, the London Metal Exchange benchmark rose 0.3% to $9,150.50 a tonne, while December rose 0.1% to $4.1713 a tonne.
Copper prices have also fallen sharply in recent weeks, especially as recent stimulus measures by China, the country's biggest importer, have failed to take effect.
Markets took moderate cues from China, which kept benchmarks unchanged on Wednesday.
