Gold price soars as geopolitical tensions increase safe-haven demand

Gold prices rose as investors turned to safe havens due to escalating geopolitical risks.

US Treasury yields declined, and a weaker US Dollar contributed to the rise in gold prices.

Sentiment turned sour following Putin's nuclear doctrine approval and mixed signals from Russian officials.

Gold posted back-to-back positive days of gains, climbing some 0.70% on Tuesday due to risk aversion amid heightened tensions in the Russia-Ukraine conflict. Market players seeking safety flock to the golden metal, which has risen above $2,600 after dipping to a two-month low of $2,536.

The XAU/USD trades at $2,629 at the time of writing. Falling US Treasury yields, and a soft US Dollar lifted the golden metal amid a scarce economic docket. However, precious metals rose due to geopolitical risks following Russia’s massive attack on Ukraine, while US President Joe Biden authorized the use of America-made long-range missiles inside Russia.

According to TASS, Russia’s President Vladimir Putin approved the nuclear doctrine in retaliation. This triggered a risk-off sentiment, with global equities dropping while Greenback and Gold advanced.