International gold prices climbed on Tuesday as geopolitical tensions intensified following Russia’s decision to lower its restrictions on nuclear weapon use.
The price of gold for December settled at $2631.00 per ounce, up $16.40 (0.6%) from the previous session on the New York Mercantile Exchange (NYMEX).
The price continued to rise from the previous day, breaking a seven-day losing streak.
Russia has amended its nuclear doctrine, now allowing for the use of nuclear weapons against non-nuclear states backed by nuclear powers. This move comes in response to the U.S. permitting the use of its long-range weapons against targets within Russian territory. As a result, investors have shifted their focus to safe-haven assets like gold.
The appeal of gold has been amplified by ongoing geopolitical tensions, prevailing low interest rates, and the economic uncertainties surrounding Donald Trump’s inauguration as the forty-seventh U.S. President.
Investors await the Federal Reserve’s upcoming interest rate decision next month. Market expectations currently indicate a 62% probability of a 0.25% point cut in the benchmark rate in December. With several Fed officials slated to speak this week, market participants hope to gain insights into the future trajectory of interest rates.
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