Gold prices increased on Tuesday morning as commodity investors with the guidance of economic parameters and relevant central banks meetings has chosen the yellow metal over the conflict between Russia, Ukraine and the West.
U.S. gold futures also grew by 0.4% to $1,804.20, while Spot gold rose 0.3% to $1,802.51 per ounce by 07:47 GMT.
Jigar Trivedi, a Mumbai commodity analyst, stated that investment demand for the yellow metal has increased marginally due to geopolitical tensions, which has made gold a save haven for investors.
Trivedi words; “investment demand has gone up slightly in the last week because of the geopolitical tensions, Providing a floor to safe-haven gold he added, “U.S. will release its ISM Manufacturing PMI, expected to come on the lower side and the dollar has cooled off from multi-month highs.”
As part of the West’s diplomatic efforts to stop a possible Russian invasion in Ukraine, Boris Johnson, Prime Minister of Britain will visit Kyiv on Tuesday.
The dollar, which moves inversely to gold declined, the dollar index eased off multi-month peaks against other currencies.
According to Ilya Spivak, a currency strategist, the U.S. non-farm payroll data due later this week is important, as any signs of weak hiring and strong wage growth may significantly embolden market expectations of a hawkish Fed and in turn pressure gold to go lower.
Meanwhile, platinum gained 1.3% to $1,031.33 Spot silver was up 0.5% at $22.54 an ounce, and palladium rose 0.6% to $2,364.69.