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Gold gains for third successive day on escalating Russia-Ukraine stress

Gold prices climbed for a third consecutive session to mark a oneweek high up on Wednesday, as financiers sought sanctuary in the safehaven metal in the middle of mounting geopolitical unease fuelled by intensifying RussiaUkraine stress.

Area gold was up 0.7% at $2,650.49 per ounce as of 12:52 p.m. EST (1751 GMT), after striking its greatest level since Nov. 11 earlier in the session. U.S. gold futures got 0.9% at $2,654.00.

Geopolitical stress intensified as Russian President Vladimir Putin reduced the limit for a nuclear strikes in response to a more comprehensive variety of traditional attacks.

Plainly that's triggered safe-haven interest, said Peter Grant, vice president and senior metals strategist at Zaner Metals.

I do see the inverted connection has actually re-exerted itself in current weeks and see dollar strength as a little bit of a headwind for gold moving forward.

The dollar rebounded, restoring the 'Trump Trade' rally after a three-day slide, restricting gains in dollar-priced gold by making it more expensive for overseas buyers. Last week, gold saw its steepest weekly drop in over three years as the dollar index hit a 1 year high.

Investor attention is also repaired on numerous Federal Reserve authorities who are set to speak today. Market expectations for a December rate cut have actually decreased significantly, with chances now at 55.7%, down from 82.5% simply a week earlier.

A December time out in Fed rate cuts could subdue the gold cost in the short-term, but the reducing financial cycle, macroeconomic and geopolitical uncertainty, and healthy physical need will maintain favorable gold market sentiment, ANZ said in a note.

Brokerages see U.S. President-elect Donald Trump's proposed tariffs to sustain volatility across worldwide markets, stimulating inflationary pressures and, in turn, restricting the scope for major reserve banks to relieve financial policy.

Bullion is thought about a hedge against inflation, however greater rates reduce the appeal of holding the non-yielding possession.

Among other metals, spot silver fell 0.6% to $31.03. per ounce, platinum shed 1.6% to $958.79 and palladium. lost 1.5% to $1,019.23.

(source: Reuters)