Key Points:
Gold prices extended their rally for the fourth consecutive session on Thursday, closing at $2,657.24 per ounce, just below the intraday high of $2,660.41.
The ongoing conflict between Russia and Ukraine and broader global tensions have reinforced gold’s safe-haven appeal, while a weaker U.S. dollar further supported demand.
From the chart, we see a steady uptrend, with a 0.30% gain during the session and prices consolidating near their recent highs.
Picture: Gold climbs to $2,657.24, hitting a two-week high as safe-haven demand strengthens, as seen on the VT Markets app.
Moving averages (5, 10, and 30) remain aligned upward, confirming sustained bullish sentiment. The MACD histogram shows strengthening momentum, with positive divergence signalling continued buying interest.
The current consolidation phase suggests a potential breakout if tensions between Russia and Ukraine escalate further or economic data reinforces demand for safe-haven assets.
Safe-haven buying remains the primary driver of gold prices. Ukraine’s launch of British Storm Shadow missiles into Russian territory, following the use of U.S. ATACMS missiles has heightened fears of a broader conflict.
Moscow has labelled the strikes as a significant escalation, raising concerns about potential retaliatory measures.
Further adding to tensions, the United States vetoed a United Nations Security Council resolution calling for a ceasefire in Gaza, underscoring global uncertainty and bolstering demand for safe-haven assets like gold.
A 0.1% decline in the U.S. dollar provided additional support for gold, making it more attractive to international buyers.
The market is now focused on upcoming remarks from Federal Reserve officials and the release of U.S. jobless claims data later in the day.
Market expectations for a 25-basis-point Fed rate cut in December stand at 56%, according to the CME FedWatch tool.
See also: Gold Rises to One-Week High as Dollar Eases
While such a move could pose short-term headwinds for gold, the longer-term outlook remains bullish amid geopolitical uncertainties and economic risks.
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