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Gold retraces half of its losses following U.S. presidential election

 
 Gold retraces half of its losses following U.S. presidential election (photo credit: SHUTTERSTOCK)
Gold retraces half of its losses following U.S. presidential election
(photo credit: SHUTTERSTOCK)

Precious metals market shows signs of strength as tensions increase exponentially in Eastern Europe

Gold prices moved about a half-percent higher Thursday morning amid a growing worry among investors about increased tensions in Eastern Europe.

Ukrainian officials told ABC News Russia launched a single intercontinental ballistic missile (ICBM) toward southeastern Ukraine on Thursday, just days after the U.S. announced it would be permitting Ukraine to use American-made missiles to attack Russian territory.

Intercontinental ballistic missiles are widely known for the capability to carry nuclear warheads — though the one believed to have been used to attack Russia carried a conventional warhead.

 Gold continued its daily streak of higher prices in early Thursday trading. (Source: TradingView)
Gold continued its daily streak of higher prices in early Thursday trading. (Source: TradingView)

Gold continued its daily streak of higher prices in early Thursday trading. (Source: TradingView)

However, it’s not immediately clear how credible the reports of the ICBM launch are, with Ukrainian officials telling ABC they are “95%” sure an ICBM was used, while U.S. officials are claiming it was instead an intermediate-range ballistic missile.

Gold traded 0.5% higher Thursday morning, an increase of $13 an ounce at $2,665 spot price. Silver traded flat Thursday, hovering in the $30.85 an ounce range.

Saxo Bank Head of Commodity Strategy Ole Hansen noted silver’s sluggish response to the geopolitical tensions in a note released on X Thursday.

“Silver’s so-far sluggish recovery highlights this concern as the main driver, with limited support from industrial metals, which continue to be weighed down by the tariff threat to demand,” he wrote. “Gold has retraced half the recent $253 correction, reaching its 50-DMA at $2,661 as geopolitical concerns continue to feed fresh momentum.”

 Saxo Bank’s Head of Commodity Strategy Ole Hansen shows gold has quickly retraced half of its loses since early November.
Saxo Bank’s Head of Commodity Strategy Ole Hansen shows gold has quickly retraced half of its loses since early November.

This chart from Saxo Bank’s Head of Commodity Strategy Ole Hansen shows gold has quickly retraced half of its loses since early November. (Source: @Ole_S_Hansen on X)

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This article is for informational purposes only. The opinions and analysis herein are those of the author and are not financial advice. The Jerusalem Post (JPost.com) does not endorse or recommend any investments based on this information. Investors should consider their financial situation, investment goals, and risk tolerance before making any decisions. Consulting a qualified financial advisor is recommended. JPost.com is not liable for any investment losses from using this information. The information provided is for educational purposes only and should not be considered as trading or investment advice.

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