Gold price today: Gold rate dips from one-week high. Check latest value

Gold prices eased from a one-week high on Wednesday as the dollar strengthened, though safe-haven demand linked to Russia-Ukraine tensions helped cap further losses, as per a report.

Spot gold was down 0.3 per cent at 2,623.48 per ounce, as of 1047 (GMT), after hitting its highest levels since November 11 earlier in the session. U.S. gold futures dropped 0.2 per cent to $2,626.80, Reuters reported.

The U.S. dollar rebounded after hitting a one-week low. A stronger U.S. currency makes bullion more expensive for overseas buyers.


The current decline in gold can be attributed to profit-taking and a stronger dollar, but developments in the Russia-Ukraine situation are crucial and should be closely observed, Zain Vawda, market analyst at MarketPulse by OANDA, said.

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Russian President Vladimir Putin lowered the threshold for a nuclear strike in response to a broader range of conventional attacks, days after reports said Washington had allowed Ukraine to use U.S.-made weapons to strike deep into Russia.

Meanwhile, several Federal Reserve officials are expected to speak this week, which could provide insights into the future path of interest rates. Traders see a 58.9 per cent chance of a 25-basis-points cut in December and a 41.1 per cent chance of rates being held steady.

"A December pause in Fed rate cuts could subdue the gold price, in the short term, but the easing monetary cycle, macroeconomic and geopolitical uncertainty, and healthy physical demand will maintain positive gold-market sentiment," ANZ said in a note.

Recent U.S. economic data and expectations that Republicans will enact more inflationary policies have raised prospects that interest rates will remain higher for longer. Bullion is considered a hedge against inflation, but higher rates reduce the appeal of holding the non-yielding asset.

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Among other metals, spot silver fell 1.1 per cent to $30.85, platinum shed 1 per cent to $963.80 and palladium edged about 1.1 per cent lower to $1,024.56.

FAQs

Q1. Who is President of Russia?
A1. Vladimir Putin is President of Russia.

Q2. What is safe-haven asset?
A2. Gold is safe-haven asset.