Bullion traded above $2,660 an ounce after Ukraine said that Russia had launched an intercontinental ballistic missile at the central Ukrainian city of Dnipro. The strike appears to be the first reported use of an ICBM, which is designed to hit targets thousands of kilometers away, since the beginning of the invasion. Heightened geopolitical tensions tend to benefit the precious metal.

Bullion is clawing back losses seen in the immediate aftermath of Donald Trump's victory in the US election, which sparked a rally in the US dollar. Gold has gained almost 30% this year and there are widespread expectations for fresh records in 2025, with Goldman Sachs Group Inc. and UBS Group AG both issuing bullish outlooks in recent days.

In the US, Federal Reserve Bank of Boston President Susan Collins said that more interest-rate cuts were needed, but policymakers should proceed carefully. Lower rates typically benefit gold as it doesn't pay interest.

The potential for rising inflation under a Trump presidency may see the Fed slow or pause its rate-cutting cycle, keeping investors on edge, according to Priyanka Sachdeva, a market analyst with Phillip Nova Pte Ltd.

Spot gold was 0.6%% higher at $2,667.46 an ounce at 10:10 a.m. in London. The Bloomberg Dollar Spot Index dipped 0.01%% after gaining 0.4% on Wednesday. Silver rose to trade above $31 an ounce, while platinum and palladium were little changed. 

Source : Bloomberg