Gold Prices Rise Amid Geopolitical Tensions And Holiday Market Lull
Date
12/26/2024 7:00:32 PM
(MENAFN- The Rio Times) Gold prices rose on December 26, driven by heightened geopolitical tensions and a lack of new market stimuli. February gold futures increased by 0.70%, reaching $2,653.90 per troy ounce on the Comex division of the New York Mercantile Exchange (Nymex).
Analysts predict that the prices of this precious metal may experience fluctuations and volatility in the short to medium term. The recent rise in gold prices continued from gains observed on Christmas Eve.
The trading session before the holiday saw minimal market activity, yet geopolitical conflicts pushed investors toward safer assets like gold.
Daniel Pavilonis, a senior market strategist at RJO Futures, noted that some of gold's gains were related to the ongoing situation in Ukraine. This was particularly the case after Russia targeted Ukraine's electrical infrastructure.
In addition to the conflict in Ukraine, the Russian Federal Security Service announced the arrest of four suspects. They are linked to an alleged conspiracy involving Ukraine.
This conspiracy reportedly aimed to assassinate high-ranking officials within Russia's Ministry of Defense. Market participants also focused on the aftermath of an Azerbaijan Airlines plane crash in Kazakhstan .
Reports indicated that a U.S. official attributed this incident to Russian involvement, further intensifying market scrutiny. Analysts from Nanhua Futures suggested that without a strong driving force during the holiday season, gold prices might face unpredictable movements.
Investors should remain cautious as they navigate these turbulent geopolitical waters, balancing their portfolios amid uncertainty.
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