Gold prices closed flat on Tuesday, but were climbing after the session settlement, following reports that Russian missiles crossed into NATO member Poland, killing two people.
Gold prices for December
delivery fell 0.01%, to settle at $1,776.80 per ounce on Comex. Prices were up 0.1% to $1,779.80 an ounce in extended trading, after touching a high of $1,791.80 Tuesday, the highest intraday level for a most-active contract since Aug. 17, FactSet data show.
Copper prices for December delivery
dropped to $3.82 per pound.
Geopolitical angst was back in force Tuesday, after reports that Russian missiles hit NATO member Poland, sparking a rush back into haven assets by investors.
“This is what the market is focusing on right now,” said Edward Moya, senior market analyst at Oanda, in a phone interview. “You are seeing that the war in Ukraine just took a turn for the worst. This is triggering a flight to safety. The dollar is rallying, and in addition, so is gold.”
Russian missiles on Tuesday crossed into NATO member Poland, killing two people, the Associated Press reported, citing a senior U.S. intelligence official. The news service also reported that Polish government spokesman Piotr Mueller didn’t immediately confirm the information, but said top leaders were holding an emergency meeting due to a “crisis situation.”
“This is raising many concerns that you are now going to see, possibly these geopolitical tensions weigh on the market,” Moya said.
Earlier, a retreat in gold from highs Tuesday was attributed to “the dollar bouncing off its lows after plunging in the aftermath of another inflation surprise,” as the U.S. producer price index reading came in softer than expected, Fawad Razaqzada, market analyst at City Index and FOREX.com, told MarketWatch.
U.S. wholesale prices rose just 0.2% in October, a fourth straight soft reading that suggests inflation is on the wane after hitting a 40-year high earlier in the year. Economists polled by The Wall Street Journal had forecast a 0.4% gain.
Some of the moves for the dollar briefly were unwound, following the inflation report. The ICE U.S. Dollar Index
was up less than 0.1% at 106.72 in Tuesday dealings.
–Additional reporting by Joseph Adinolfi