Gold climbs as Russia risks outweigh rate hike concerns
Tuesday, 27 June 2023
Gold climbed on Monday as geopolitical concerns surrounding Russia drew some investors into the safe haven metal, outweighing pressure from a hawkish interest rate outlook, reports Reuters.
Spot gold rose 0.6 per cent to $1,932.19 per ounce by 1116 GMT, while gold futures were up 0.7 per cent to $1,942.30.
Bullion slumped nearly 2 per cent in the previous week as hawkish comments from Federal Reserve officials signalled more rate hikes to tame sticky inflation.
"The markets are trying to adjust to the heightened geopolitical worries that unfolded in Russia this weekend," said Ole Hansen, head of commodity strategy at Saxo Bank.
Heavily armed Russian mercenaries withdrew from the southern Russian city of Rostov on Sunday under a deal that halted their rapid advance on Moscow.
Meanwhile, markets saw 72 per cent chance of a rate hike in July, with cuts seen from 2024 onwards, according to CME Fedwatch tool.