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Gold climbs to over 1-week high on safe-haven demand
Thursday, 21 November 2024 23:53 WIB | GOLD |GOLD

Spot gold rose for a fourth consecutive session on Thursday, hitting an over one-week high as safe-haven demand soared following AI bellwether Nvidia's lackluster revenue forecast and intensifying Russia-Ukraine tensions.

Spot gold was up 0.6% at $2,666.00 per ounce, while U.S. gold futures rose 0.6% to $2,668.60.

"It's really one main geopolitical factor that's at play here in the gold market over the course of the last several days - the increased tensions between Ukraine and Russia is probably most notable," said David Meger, director of metals trading at High Ridge Futures.

Investors flock to safe-haven assets during global crises, and gold has soared to multiple record highs since the Middle East conflict erupted in October last year.

With the United States vetoing a U.N. ceasefire resolution in Gaza and renewed Russia-Ukraine tensions, geopolitical risk premiums remain elevated, ensuring gold's enduring appeal.

The move to the downside in equities after Nvidia's earnings has certainly supported precious metals from a safe-haven perspective, Meger added.

Global stocks eased after AI bellwether Nvidia's revenue growth forecast failed to excite investors.

Spot gold prices are up 4% so far this week, their best performance since April, recovering from last week's sharpest weekly drop in over three years. The decline in bullion was driven by a soaring dollar, boosted by "Trump Trade" euphoria.

Brokerages expect President-elect Trump's proposed tariffs to spur global market volatility and inflation, limiting central banks' ability to ease monetary policy.

Meanwhile, a Reuters poll shows most economists anticipate a Federal Reserve rate cut in December, with smaller reductions projected for 2025.

Investor focus is also on several Fed officials scheduled to speak this week. Expectations for a December rate cut have diminished notably, with the likelihood now at 56%, a sharp drop from 82.5% just a week earlier.

Spot silver was steady at $30.85 per ounce, platinum was unchanged at $961.30 and palladium advanced 1.5% to $1,036.50.(Cay) Newsmaker.id

Source: CNBC

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