Gold gains momentum after Putin’s statements, focus shifted ‎Fed’s decision ‎

Gold rose today, Wednesday, after Russian President Vladimir Putin announced the partial mobilization of the army in a decision that restored the attractiveness of the yellow metal as a safe haven, but the strength of the dollar and the expectation of a US interest rate hike limited the gains.

And according to “Reuters”, gold rose in spot transactions 0.5%, recording $1,670.57 an ounce, by 0803 GMT. US gold futures rose 0.6 percent to $1,680.40 an ounce

Putin said that he had signed a decree for the partial mobilization of the army, effective from today, Wednesday, and said that he was defending Russian lands and that the West wanted to destroy his country.

But gold’s gains remained limited as investors sought a safe haven in the dollar as well, which rose to a new level, the highest in two decades, against a basket of major currencies, which raises the cost of gold to buyers from abroad.

Attention remained focused on the monetary policy decision expected from the Federal Reserve (the US central), which is expected at 1800 GMT, as traders are betting on an 81 percent probability that a rate hike will take place by another 75 basis points, while there is a 19 percent probability. The increase must be a full percentage point

Although gold is considered a safe investment haven during periods of political and economic uncertainty, raising interest rates reduces its attractiveness because gold does not generate a return.

As for other precious metals, silver rose in spot transactions 0.2% to $ 19.34 an ounce, and platinum increased 0.3% to $ 924.56, while palladium fell 0.2% to $ 2163.75.