Gold gains on softer dollar, widening Russia-Ukraine tensions

”The U.S. authorization and Russia’s response, which could lead to a tactical nuclear weapon, is contributing to market uncertainty, boosting safe-haven assets like gold… On the upside, the key resistance to watch is around $2,700,” said Ilya Spivak, head of global macro, Tastylive.

Elsewhere, several Federal Reserve officials this week are expected to potentially shed light on the U.S. rate cut trajectory.

Currently, traders see a 58.9% chance of a 25-basis-points cut in December. Recent strong data and U.S. President-elect Donald Trump’s proposed tariffs have pointed to rates remaining higher for longer.

The market is adjusting its expectations for the Fed’s cuts next year as inflation is becoming a bigger concern, which could be negative for gold, Spivak added.

Higher rates reduce the appeal of non-yielding gold.

Meanwhile, Kansas City Fed President Jeffrey Schmid said that it remains uncertain how far rates can fall, though the initial reductions made by the U.S. central bank are a vote of confidence that inflation is returning to its 2% target.

Spot silver was steady at 31.22 per ounce, platinum added 0.1% to $975.10 at $973.90 and palladium flat at $1,035.43.