Gold nears two-month high as Russia-Ukraine tensions simmer

1.25.22 - Gold Prices Near Two-Month Highs

Gold last traded at $1,851 an ounce. Silver at $23.87 an ounce.

NEWS SUMMARY: Precious metal prices rose Tuesday on Fed uncertainty despite a firmer dollar. U.S. stocks extended major losses as the January market selloff continues.

REUTERS--"Gold prices advanced towards last week's two-month high on Monday as U.S. bond yields continued to fall and investors looked to invest in the safe-haven metal amid concerns over the prospect of a Russian attack on Ukraine....

Investors are looking towards the U.S. Federal Reserve's two-day policy meeting starting on Tuesday. The Fed is expected tighten monetary policy at a much faster pace than thought a month ago to tame persistently high inflation.

'I don't expect (Fed) to have a significant impact on what gold prices are doing at this moment because the markets are more concerned about what's going on in eastern Europe,' said Michael Hewson, chief market analyst at CMC Markets UK....

The U.S. State Department has ordered diplomats' family members to leave Ukraine, as U.S. President Joe Biden weighs options to counter a buildup of Russian troops in Ukraine.

Signs of poor risk appetite were displayed across markets as Asian and European shares slipped on worries over tighter monetary policy.

'The markets have already priced in a March hike so I don't think there's going to be any surprise.'"