Gold Gains for Fourth Day as Geopolitical Tensions Escalate

A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk

Gold prices rose for a fourth straight session on Thursday, driven by safe-haven demand amid escalating tensions in the Russia-Ukraine conflict, while investors awaited remarks from US Federal Reserve policymakers on the interest rate outlook.
Spot gold was up 0.3% at $2,657.40 per ounce, as of 0547 GMT, hitting its highest since Nov. 11.
US gold futures rose 0.3% to $2,659.90, according to Reuters.
The escalation in the Ukraine war and "subsequent fears of a broader regional conflict that involves increasing threats of nuclear weapons are pushing up prices", said Kyle Rodda, financial market analyst at Capital.com.
Ukraine fired a series of British Storm Shadow cruise missiles into Russia on Wednesday, just a day after firing US missiles.
The US vetoed a UN Security Council resolution calling for a ceasefire in Gaza, adding to ongoing geopolitical tensions.
Gold's appeal is bolstered by geopolitical tensions, economic risks and a low interest rate environment.
The US dollar dropped 0.1%, making gold more affordable for international buyers.
Investors will monitor remarks from several Fed officials later in the day, while keeping an eye on initial US jobless claims data, due at 1330 GMT.
Two Fed governors offered contrasting perspectives on US monetary policy on Wednesday, with one raising concerns about stubborn inflation, while the other remaining optimistic about continued progress in reducing price pressures.
Markets see a 56% chance of a 25-basis-point US rate cut in December, per the CME Fedwatch tool.
A potential December rate reduction could be a headwind for gold, but its long-term outlook remains bullish, Rodda said.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.36% to 875.39 metric tons on Wednesday.
On Thursday, spot silver gained 1.1% to $31.21 per ounce, platinum added 0.3% to $964.53 and palladium advanced 0.7% to $1,027.86.