Gold is stabilizing as geopolitical tensions ease

Gold prices stabilized on Thursday as demand for the precious metal declined due to the latest geopolitical concerns, while hopes that the Federal Reserve (the US central bank) would be less aggressive in raising interest rates in the coming months boosted the markets.

And by 0103 GMT, there was little change in gold in spot transactions, and it recorded $ 1773.40 an ounce.

There was also little change in US gold futures, which recorded $1,776.20 an ounce.

Gold prices reached a three-month high of $1,786.35 an ounce on Tuesday, after news of two people being killed by Russian missiles in Poland near the border with Ukraine.

But the Polish president said on Wednesday that a missile that fell in his country was likely stray and fired by Ukrainian air defences, dispelling fears of a widening war between Ukraine and Russia.

Investors are awaiting the US central bank’s decision to raise interest rates in December.

The interest rate hike affects the appetite for the precious metal, which does not yield interest.

As for other precious metals, silver fell 0.3 percent to $21.41 an ounce. Platinum fell 0.3% to $1,003.4 an ounce. Palladium fell 0.2 percent to $2,067.10 an ounce.