Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

Gold hits 3-mth high as Poland missile strike spurs safe haven demand

Commodities Nov 16, 2022 01:24
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
XAU/USD
+0.21%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Gold
+0.28%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Copper
-0.39%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Ambar Warrick 

Investing.com-- Gold prices hit a three-month high on Wednesday after a Russian missile strike on Polish territory ramped up fears of a NATO-led escalation in the Ukraine conflict, boosting demand for traditional safe haven assets. 

Spot gold rose 0.1% to $1,780.62 an ounce, while gold futures advanced 0.1% to $1,784.05 an ounce, with both instruments touching their highest level since mid-August. They also rose 0.5% each on Tuesday.

Investors sought renewed safe haven exposure after a missile of Russian make fell in the eastern part of Poland and killed two people. The incident marks the first time that Russian weapons have struck NATO territory, with Ukrainian President Volodymyr Zelenskyy calling the strike a “very significant escalation” of the war. 

NATO members said they were reviewing the incident, and warned consequences for the strike if it was intentional. 

Bullion prices had surged to two-year highs during the initial days of the Russian invasion of Ukraine earlier this year. An escalation in the conflict could potentially drive up prices of the yellow metal again. 

Weakness in the dollar also benefited gold prices, after data showed U.S. producer inflation hit a 14-month low in October. The reading, coupled with softer-than-expected consumer inflation data released last week, saw markets ramping up bets that U.S. inflation had eased. 

This could see the Federal Reserve softening its hawkish rhetoric. The central bank is already expected to hike interest rates by a relatively smaller margin in December. 

Other precious metals also benefited from safe haven buying. Silver futures rose 0.5%, while platinum futures hovered near eight-month highs.

Among industrial metals, copper prices fell for a third straight session, as concerns over slowing demand in China largely offset signs of tightening supply.

Copper futures fell 0.2% to $3.8135 a pound. Prices of the red metal were on a losing spree this week after a spike in COVID-19 cases in China drove concerns over new lockdowns in the world’s largest copper importer.

This largely offset signs of tighter copper supply in the near-term, as workers at Chile’s Escondida mine, the world’s largest copper mine, announced a strike.

The move, coupled with U.S. sanctions against Russian exporters, is expected to severely crimp global copper supply. 

 

Gold hits 3-mth high as Poland missile strike spurs safe haven demand
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email