Gold extends gains on Russia-Ukraine jitters

Gold prices inched higher on Thursday for a fourth consecutive session, supported by safe-haven demand amid the intensifying Russia-Ukraine war, while investors looked for further clarity on the U.S. interest rate outlook.

Fundamentals

•  Spot gold was up 0.2% at USD 2,654.50 per ounce, as of 0023 GMT.
• US gold futures rose 0.2% to USD 2,657.10.
• Ukraine fired a volley of British Storm Shadow cruise missiles into Russia, the latest Western weapon it has been permitted to use on Russian targets a day after it fired US ATACMS missiles.
• Meanwhile, the United States vetoed a UN Security Council resolution calling for a ceasefire in Gaza, adding to the ongoing geopolitical tensions.
• Non-yielding assets like bullion thrive in a lower interest rate environment and during times of geopolitical uncertainties.
• Markets now see a 54% chance of a 25-basis-point rate cut in December, as per the CME Fedwatch tool.
• Two Federal Reserve governors offered contrasting perspectives on US monetary policy: one raised concerns about stubborn inflation, while the other remained optimistic about continued progress in reducing price pressures.
• Traders will closely monitor initial jobless claims data, due at 1330 GMT, and remarks from several Fed officials later in the day.
• SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.36% to 875.39 tonnes on Wednesday.
• Spot silver gained 0.4% to USD 30.99 per ounce, platinum steadied at USD 960.46 and palladium edged up 0.1% to USD 1,021.73.

(Reporting by Daksh Grover in Bengaluru; Editing by Subhranshu Sahu)