World gold price on November 20: Russia - Ukraine tension causes gold price to reach one-week peak

DNVN - Rising tensions between Russia and Ukraine have pushed global gold prices up for the second consecutive session, reaching a one-week high, as investors seek "safe haven" assets. At the same time, the market is still watching for important signals about the US Federal Reserve's interest rate plan.

At 1:42 a.m. on November 20 (Vietnam time), spot gold prices increased by 0.6% to $2,628.76/ounce, the highest since November 11. Gold futures prices also increased by 0.6%, closing at $2,631/ounce.

On the same day, Russian President Vladimir Putin signed a decree approving a new nuclear doctrine, which outlines the conditions for the use of nuclear weapons, including a large-scale ballistic missile attack on Russia. The ATACMS missile that the US agreed to provide to Ukraine also belongs to this group of weapons.

These tensions have pushed a large amount of money into gold as a safe haven, said Daniel Ghali, commodity strategist at TD Securities. Gold tends to be more attractive to investors in times of geopolitical risks, economic risks and low interest rates.

Several Fed officials are scheduled to speak this week, which could provide more insight into the pace of rate cuts. Traders are currently pricing in a 63% chance that the Fed will cut rates by 0.25 percentage points by December 2024.

According to analysts from Commerzbank, the factors supporting gold have not diminished, promoting buying at low prices. These factors include geopolitical instability, central bank gold purchases, and rising budget deficits in the US and many other Western countries.

In addition, the decline in the US dollar after last week's strong gains also supported gold prices. A weaker US dollar makes gold cheaper for investors using other currencies.

Among other metals, spot silver rose 0.1% to $31.17 an ounce, while platinum rose 0.5% to $971.66 an ounce.

In Vietnam, in the same session, Saigon Jewelry Company announced the price of SJC gold bars at 82.00 - 85.03 million VND/tael (buy - sell).

Cao Thong (t/h)

Source: https://doanhnghiepvn.vn/kinh-te/gia-vang-the-gioi-ngay-20-11-cang-thang-nga-ukraine-khien-gia-vang-dat-dinh-mot-tuan/20241120091614474