Gold prices are higher on Wednesday morning. The price of gold is trading at $2642.39, up $10.31. The price of silver is trading at $31.08, down 13 cents.
Precious metals experienced a strong rally before the US elections but faced a sharp downturn due to a surge in the USD and yields, breaking through key technical support levels. This correction has now ended as heightened US-Russia tensions have driven fresh demand for safe havens, including precious metals, the Japanese yen, Swiss francs, and short-duration government bonds. The US debt situation is expected to worsen as the Trump administration increases unfunded spending on tax cuts, infrastructure, and defense.
Gold and silver prices are recovering, supported by a fading dollar rally and worsening US-Russia relations following President Biden’s approval of Ukraine’s use of long-range missiles against Russia. The situation escalated when the Kremlin stated that any aggression against Russia by a non-nuclear state with participation of a nuclear state would be considered a joint attack. Shortly after, reports emerged of Ukraine’s first ATACMS strike inside Russia, further boosting demand for safe-haven assets.
