Gold prices rose during Monday’s Asian trade, following a six-day downward streak as heightened tensions between Russia and Ukraine stoked safe-haven demand.
By 2:40 pm AEDT (4:05 am GMT) spot gold had bounced by US$28.46, or 1.1% to $2,595 per ounce.
Investors moved back into the yellow metal as U.S. President Joe Biden authorised Ukraine to deploy MGM-140 Army Tactical Missile Systems (ATACMS) for strikes within Russia, following Moscow’s deployment of North Korean ground troops to bolster its frontline forces.
Meanwhile, the U.S. dollar remained steady near yearly highs, following a surge of 1.6% last week as president-elect Donald Trump’s policies boosted expectations of higher inflation and fewer rate cuts from Federal Reserve policymakers.
Looking ahead, investors will be closely monitoring a speech from Chicago Federal Reserve President Goolsbee on Monday, as well as China’s loan prime rate decision later in the week for further direction.