Gold prices exceeded the 38.2% Fibonacci level, trading at approximately $2,650, and are nearing the 50% Fibonacci level. This increase was driven by investors seeking safe investments due to new tensions in the Russia-Ukraine conflict.
Ukraine Uses UK and US Missiles Against Russia
Ukraine launched British-made missiles into Russian areas just after using American long-range missiles the previous day. Meanwhile, Russia had just adjusted its policies to make it easier to deploy nuclear weapons.
Investors also focus on the Federal Reserve’s next moves despite these tensions. Most expect a slight rate cut of 0.25% at the December meeting, making gold, a non-interest-earning asset, more appealing.
However, forecasts for rate cuts in the following year are less aggressive than earlier predictions due to ongoing concerns about persistent high inflation affecting future economic policy decisions.