Gold prices held steady near recent highs as concerns over Russia’s nuclear policy fueled investor interest in safe-haven assets. The metal’s resilience comes amid heightened geopolitical tensions, pushing demand despite a broadly stronger U.S. dollar and stable bond yields.
Analysts point to Moscow’s announcement of expanded nuclear capabilities as a key driver for the market’s focus on security. The potential escalation has increased gold’s appeal as a risk hedge, with investors reallocating funds into commodities. While broader economic data, including robust retail sales in the U.S., typically supports a stronger dollar, geopolitical uncertainty appears to overshadow these pressures, keeping gold buoyant.
With geopolitical risks remaining high, gold’s trajectory may depend on further developments, but its role as a reliable hedge remains evident in the current climate.
