Gold prices rose for the third consecutive session on Wednesday, reaching a weekly high amid escalating Russia-Ukraine tensions, which heightened geopolitical risk concerns and drove investors toward gold as a safe-haven asset.

Investors are also monitoring speeches from U.S. Federal Reserve officials this week. Expectations for a rate cut in December have significantly dropped, with current odds at just 55.7%.

U.S. brokerage firms suggest that if Trump is re-elected, his proposed tariffs may increase global market volatility, trigger inflationary pressures, and limit central banks' room for monetary policy easing.

Although gold has traditionally been a hedge against inflation, its appeal diminishes in a high-interest-rate environment as it does not yield returns.

Gold Prices Surge Amid Geopolitical Tensions and Monetary Policy Speculations

Nov 21 2024