Gold hits 1 week high despite reduced bets for US monetary easing

Gold bars

Gold prices rose today, Nov. 19 as geopolitical risks in Europe resurfaced, despite diminishing expectations of a Federal Reserve rate cut in next month’s meeting.

Futures for the yellow metal, due for December delivery, rose by 0.31% or $8.1 to $2,622.7 per ounce as of 10:59 am KSA time. It gained of 1.75% at the close of the previous session, reaching the highest level since Nov. 11.

Spot gold also gained 0.27% to $2,618.96 per ounce, while silver futures for December delivery climbed 0.31% to $31.32 per ounce. Meanwhile, spot platinum prices remained flat at $968.15 per ounce.

The rise in gold prices coincided with the stability of the US dollar index—representing the value of the US currency against a basket of six major currencies—at 106.31 points.

News circulated about the Biden administration allowing Ukraine to use US-made weapons for strikes deep into Russian territory, which fueled fears of military escalation in Europe and drove up the prices of base metals.