Gold price soars as geopolitical tensions increase safe-haven demand
Gold prices rose as investors turned to safe havens due to escalating geopolitical risks.
US Treasury yields declined, and a weaker US Dollar contributed to the rise in gold prices.
Sentiment turned sour following Putin's nuclear doctrine approval and mixed signals from Russian officials.
Gold posted back-to-back positive days of gains, climbing some 0.70% on Tuesday due to risk aversion amid heightened tensions in the Russia-Ukraine conflict. Market players seeking safety flock to the golden metal, which has risen above $2,600 after dipping to a two-month low of $2,536.
The XAU/USD trades at $2,629 at the time of writing. Falling US Treasury yields, and a soft US Dollar lifted the golden metal amid a scarce economic docket. However, precious metals rose due to geopolitical risks following Russia’s massive attack on Ukraine, while US President Joe Biden authorized the use of America-made long-range missiles inside Russia.
According to TASS, Russia’s President Vladimir Putin approved the nuclear doctrine in retaliation. This triggered a risk-off sentiment, with global equities dropping while Greenback and Gold advanced.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.