Gold prices rose for the fourth straight session on Thursday, boosted by safe-haven demand amid escalating tensions in the Russia-Ukraine conflict, as investors await remarks from policymakers. the Federal Reserve on the interest rate outlook.
Spot gold was up 0.3% at $2,657.41 an ounce, at 0238 GMT, hitting its highest level since November 11.
U.S. gold futures rose 0.3% to $2,660.00.
“The escalation in the war between Russia and Ukraine and subsequent fears of a broader regional conflict that involves growing threats of nuclear weapons are pushing (gold) prices higher,” said Kyle Rodda, financial markets analyst at Capital.com.
Ukraine fired a series of British Storm Shadow cruise missiles at Russia on Wednesday, marking the latest use of Western weapons on Russian targets, just a day after firing US missiles.
Separately, the United States vetoed a United Nations Security Council resolution calling for a ceasefire in the Gaza Strip, escalating current geopolitical tensions.
Gold's appeal is heightened by geopolitical tensions, economic risks and low interest rates.
The US dollar fell more than 0.1% on Thursday, making gold more affordable for international buyers. [USD/]
Meanwhile, investors will watch for remarks from several Fed officials later in the day, while also keeping an eye on initial U.S. jobless claims data, due at 1330 GMT.
Markets see a 56% chance that US rates will be cut by 25 basis points in December, according to the CME's Fedwatch tool.
A potential rate cut in December could be a headwind for gold, but the long-term outlook for the metal remains bullish, Capital.com's Rodda said.
Two Fed governors offered contrasting outlooks on U.S. monetary policy on Wednesday, with one expressing concern about persistent inflation while the other remained optimistic that continued progress in reducing pressures on the costs.
SPDR Gold Trust, the largest gold-backed exchange-traded fund, said its holdings rose 0.36% to 875.39 tonnes on Wednesday. [GOL/ETF]
On Thursday, spot silver gained 0.8% to $31.11 an ounce, platinum added 0.4% to $965.30 and palladium rose 0.7% to 1,027.84 dollars.
