On Friday (November 22), spot gold extended its gains in the Asian trading session, reaching a nearly two-week high of $2689.61 per ounce, rising about $20 from Thursday's closing price, and is set to achieve five consecutive days of gains. Despite the strengthening of the dollar and a cooling expectation of a December interest rate cut by the Federal Reserve putting some pressure on gold prices, concerns over the escalation of the Russia-Ukraine conflict have clearly dominated, driving up the demand for gold as a safe haven.
Ukrainian Parliament Meeting Cancelled, Russian Threat to Government Buildings Escalates
Latest reports indicate that the Ukrainian Parliament's scheduled meeting on November 22 has been canceled. According to the "Ukrainian Pravda," lawmakers received warnings that Russia might attack government buildings and were advised to limit themselves and their families' activities in the government area. Lawmaker Oleksiy Honcharenko confirmed the news and revealed that the next parliamentary meeting is planned for December.
Putin's Firm Statement, Russia-Ukraine Conflict May Escalate to Global Confrontation
Against this backdrop, the latest statement by Russian President Putin has further intensified market concerns. On Thursday, Putin stated that Russia has used hypersonic intermediate-range ballistic missiles to strike Ukrainian military facilities, responding to Western countries providing long-range weapons support to Ukraine. He warned that if Western countries continue to supply Ukraine with long-range weapons, Moscow would consider strikes on the military facilities of those countries.
Putin emphasized that in the joint strike on Ukraine's military-industrial complex on November 21, the Russian military tested intermediate-range missile systems, including the latest non-nuclear hypersonic equipment, aiming to demonstrate Russia's ability to respond to Western threats.
U.S. Allows Ukraine to Use Western Weapons, Situation Escalates
The geopolitical situation between Russia and Ukraine has been escalating since last weekend. On November 17, two U.S. officials confirmed that the Biden administration has allowed Ukraine to use American-made weapons to strike the Russian heartland, marking a significant shift in U.S. policy regarding the Russia-Ukraine conflict. In the following days, Ukraine launched a series of attacks on Russia, further exacerbating tensions.
On November 19, Ukraine for the first time used the American-supplied ATACMS missiles to attack an ammunition depot in Russia's Bryansk region, prompting a strong reaction from Moscow. Russia announced a revision of its nuclear deterrence policy, lowering the threshold for using nuclear weapons in response to new threats.
Meanwhile, on Wednesday, Ukraine fired 12 British "Storm Shadow" cruise missiles at Russia, following the use of American ATACMS missiles. For security reasons, the U.S. has closed its embassy in Kyiv, indicating the situation is rapidly deteriorating.
Safe-Haven Sentiment Rises, Bulls Flock to Gold Market
The escalation of the Russia-Ukraine conflict has led to a surge in global market safe-haven sentiment, driving gold to the forefront of investors' attention. Analysts point out that the current rise in gold prices is mainly driven by geopolitical tensions, and as the situation further escalates, bulls may increase their momentum, possibly pushing gold prices even higher.
In the coming days, the market will closely monitor further developments in the Russia-Ukraine conflict and the response of various countries, with safe-haven assets likely to continue receiving strong support.
