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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
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
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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
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.

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World Still Split Over Money as Clock Ticks on COP29

A man stands next to the logo of the United Nations Climate Change Conference "COP 29" in Azerbaijan (Reuters).
A man stands next to the logo of the United Nations Climate Change Conference "COP 29" in Azerbaijan (Reuters).
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World Still Split Over Money as Clock Ticks on COP29

A man stands next to the logo of the United Nations Climate Change Conference "COP 29" in Azerbaijan (Reuters).
A man stands next to the logo of the United Nations Climate Change Conference "COP 29" in Azerbaijan (Reuters).

A fresh draft deal published Thursday at the deadlocked COP29 climate talks shows rich and poor countries still divided as time runs out to strike a finance agreement for developing nations.
The streamlined text released in Azerbaijan recognizes developing countries need a trillion dollars per year to fight global warming, but does not present a much-sought figure needed to land the deal.
This will be the focus as nations go back to the negotiating table with just a day to go until COP29 is supposed to conclude in Baku, AFP reported.
The draft reflects the broad and opposing positions of developed countries -- which are obligated to pay climate finance -- and the developing countries that receive it.
"The new finance text presents two extreme ends of the aisle without much in between," said Li Shuo, director of the China climate hub at the Asia Society Policy Institute.
The main sticking points -- who should pay, how much and the type of funding -- remain unresolved in the slimmed-down 10-page document.
Ali Mohamed, the chair of the African Group of Negotiators, said the "elephant in the room" was the lack of a concrete number.
"This is the reason we are here... but we are no closer and we need the developed countries to urgently engage on this matter," said Mohamed, who is Kenya's climate envoy.
Rich countries have been under pressure to say how much they are willing to provide developing countries to wean off fossil fuels and build resilience against disaster.
Some developing countries have pushed for a final commitment of $1.3 trillion, mostly in grants from government coffers, and not loans they say add to debt.
The European Union and the United States, two of the biggest climate finance providers, had said they would not reveal a figure until the scope of any deal was much clearer.
"The fact there is no number specified for the climate finance goal is an insult to the millions of people on the frontlines bearing the brunt of climate change impacts," said Greenpeace's Jasper Inventor.
Mohamed Adow, a Kenyan climate activist, also lamented the lack of clarity around a figure.
"We came here to talk about money. The way you measure money is with numbers. We need a cheque but all we have right now is a blank piece of paper," said the founding director of think tank Power Shift Africa.
Developing countries, excluding China, will need $1 trillion a year in foreign assistance by 2030.
This number rises to $1.3 trillion annually by 2035, according to an expert economic assessment commissioned by the United Nations.
But many of the nations obligated to help cover this cost face political and fiscal pressures, and insist they cannot rely on their balance sheets alone.