World gold price exceeds 2,700 USD

Safe haven demand helped the precious metal rise for a fifth straight session, with a total of more than $170 this week.

At the end of the trading session on November 22, the world spot gold price increased by 47 USD to 2,716 USD per ounce. This is the first time the price has exceeded 2,700 USD in the past two weeks, when the demand for shelter outweighed the impact of the strong dollar and the possibility of the US lowering interest rates is increasingly unclear.

"Russia-Ukraine tensions seem to be spilling over into Russia-US tensions. This will certainly increase short-term demand for safe havens," said Alex Ebkarian, COO of Allegiance Gold.

World gold prices have increased continuously in recent sessions. Chart: Reuters

Russian President Vladimir Putin announced on November 22 that the test of the Oreshnik medium-range missile system with hypersonic warhead was successful. A day earlier, Russia attacked the Southern Machine Building Plant (Yuzhmash) in Dnipro (Ukraine), saying this was a retaliation move for Ukraine using ATACMS missiles supplied by the US and Storm Shadow missiles from the UK.

Gold prices have risen 5.7% this week - the strongest weekly gain since March 2023 - when the local banking crisis in the US broke out. Prices have increased for five consecutive sessions, with a total of more than $ 170.

Gold is a popular investment during times of political and economic uncertainty and low interest rates. Prices rose despite the Dollar Index hitting a two-year high yesterday and Bitcoin hitting a new record of $99,768 per coin.

The gold market also shrugged off the fact that the probability of the US Federal Reserve easing monetary policy next month is decreasing. Investors now predict a 53% chance of the Fed cutting interest rates, down sharply from 82% last week.

This week, some Fed officials expressed concern that the pace of cooling inflation is slowing and called for caution, while others stressed the need for further rate cuts.

Ebkarian predicts that gold prices could rise to $2,750 by mid-next month, due to policy fluctuations and inflation risks from US President-elect Donald Trump's import tax proposals.

Other precious metals were mixed on November 22. Silver rose 1.5% to $31.20. Palladium fell 1.4% to $1,015, while platinum rose 0.6% to $964.

World gold price increased for the fourth consecutive session
The need for shelter helped the precious metal increase by nearly 20 USD in the session of November 21, bringing the total increase since the beginning of the week to more than 100 USD.

At the close of yesterday's trading session, the world spot gold price increased by 19 USD to 2,668 USD per ounce. This is the 4th consecutive session that the market has increased, thanks to the demand for shelter after Nvidia's disappointing revenue forecast and the escalation of Russia - Ukraine tensions.

"The main driver for gold over the past few days has been geopolitical uncertainty. Most notably, perhaps, the tensions between Russia and Ukraine," said David Meger, director of precious metals trading at High Ridge Futures.

World gold price developments over the past year. Chart: Reuters

Investors often buy safe-haven assets during times of crisis. Since the conflict in the Middle East broke out last October, prices have been hitting new highs. With the US vetoing a UN Security Council resolution calling for a ceasefire in the Gaza Strip and Russia-Ukraine tensions escalating again, gold prices could continue to rise.

Another reason for gold’s appeal is that US stocks fell on November 21 after Nvidia announced a lower-than-expected fourth-quarter revenue forecast. This caused investors to seek refuge in the precious metal. The US chipmaker’s business situation is considered an indicator of the global AI wave.

Gold prices have risen 4% since the beginning of the week - the strongest in 7 months. The market is recovering after the worst week in more than 3 years. "The next resistance for gold prices will be $ 2,700 an ounce," said Jim Wyckoff, market analyst at Kitco Metals.

Investors are focused on speeches from Federal Reserve officials this week, with the market increasingly shrugging off bets that the Fed will cut interest rates next month, with the probability now at just 56%.

Brokerage firms also predict that President-elect Donald Trump's import tax policies will cause global instability and fuel inflation, making it difficult for central banks to loosen monetary policy.