Gold is gaining momentum after Putin’s statements

Gold rose on Wednesday after Russian President Vladimir Putin announced a partial mobilization of the army in a decision that restored the attractiveness of the yellow metal as a safe haven. Still, the strength of the dollar and the expectation of a US interest rate hike limited the gains.

And gold rose in immediate transactions 0.5 percent, recording 1670.57 dollars an ounce by 0803 GMT. US gold futures rose 0.6 percent to $1,680.40 an ounce.

Putin said he had signed a decree for the partial mobilization of the army, effective from Wednesday, and said he was defending Russian territory and that the West wanted to destroy his country.

But gold gains remained limited as investors sought a safe haven in the dollar as well, which rose to a new level, the highest in two decades, against a basket of major currencies, which raises the cost of gold to buyers from abroad.

Attention remained focused on the monetary policy decision expected from the Federal Reserve, which is expected at 1800 GMT, as traders are betting on an 81 percent probability that the interest rate hike will take place by another 75 basis points, while there is a 19 percent probability that the increase will be a full percentage point.

Although gold is considered a safe investment haven during political and economic uncertainty, raising interest rates reduces its attractiveness because gold does not generate a return.

As for other precious metals, silver rose in spot transactions 0.2 percent to $ 19.34 an ounce, and platinum increased 0.3 percent to $ 924.56, while palladium fell 0.2 percent to $ 2163.75.