Gold prices climbed for the third straight session as investors sought safe-haven assets amidst growing market uncertainties.
The February gold futures contract rose 0.68% to $2,690.80 per troy ounce on the Comex division of the New York Mercantile Exchange.Investors flocked to gold as a hedge against market volatility.
However, cautious statements from Federal Reserve officials about monetary policy and potential tariff increases by United States President-elect Donald Trump limited the gains.LHMeyer analysts note that economists and investors widely agree the Fed will not cut rates at its January meeting.
The future course of action remains uncertain.The central banks concerns about inflation or economic growth will shape its policy decisions.
CITIC Securities analysts attribute the recent upward trend in gold prices to increased demand from Chinas central bank and global tensions.In December, the Chinese central banks gold reserves grew, boosting market sentiment.
Geopolitical factors also influenced the market.
Donald Trump postponed his campaign promise to end the Ukraine war in 24 hours to several months.Gold Surges for Third Consecutive Day Amid Geopolitical Uncertainties.
(Photo Internet reproduction)European partners interpreted this as a sign that his administration might not immediately abandon support for Kyiv.
The uncertainties surrounding potential United States tariff hikes are fueling risk sentiment, further supporting gold prices.Investors view gold as a safe haven during times of economic and political uncertainty.
As global tensions persist and monetary policies remain uncertain, gold continues to attract investors seeking stability.The precious metals performance reflects the complex interplay of economic, political, and market forces shaping the current financial landscape.