Gold climbed above $2,620 per ounce on Tuesday, reaching its highest level in a week, as the dollar’s rally paused and investors focused on upcoming statements from Federal Reserve officials for further guidance on the interest rate cut trajectory.
Gold rises for second straight session
Stronger-than-expected economic data has raised concerns about whether the Fed will continue its rate-cutting strategy. Expectations for a quarter-point rate reduction at the Fed’s December meeting have fallen to just under 59%, down from 62% the previous day and over 65% a week ago, according to CME FedWatch. Additionally, rising geopolitical risks are fueling safe-haven demand for precious metals.
Tensions boosted the gold
Over the weekend, President Joe Biden approved the use of advanced, long-range U.S. weaponry by Ukraine inside Russia. In response, on Tuesday, Russia unveiled an update to its nuclear doctrine, warning potential adversaries of the certainty of retaliation if they attack Russia or its allies.
