Putin approves new version of Russia's nuclear deterrent policy, triggering safe-haven demand as gold rises for the second consecutive time, returning above $2600.

Due to the escalation of tensions between Russia and Ukraine, demand for safe-haven assets has increased, leading to a consecutive two-day rise in gold prices. After rising more than 2% in the first two days of this week, the price of gold broke through $2,638 per ounce. On Tuesday, gold prices rose alongside US Treasury bonds after Russian President Putin approved updated nuclear principles expanding the conditions for the use of nuclear weapons, as well as Ukraine launching its first missile attack on Russia. During times of geopolitical and economic uncertainty, investors often seek refuge in gold. The strength of gold prices this week has also been driven by the decline in the US dollar, which has retraced some of its strong gains made after Trump won the presidential election. Standard Chartered Bank analyst Suki Cooper stated in a report, Geopolitical risks are on the rise, uncertainty remains prevalent in markets since the pandemic, concerns about unknown risks are mounting, reigniting interest in the gold market as a safe-haven asset. However, macro factors, including the US dollar and interest rate cut expectations, may set the tone in the short term. Gold prices have risen by over 25% so far this year, primarily supported by central bank purchases, the Federal Reserve shifting towards a loose monetary policy, and geopolitical tensions in Europe and the Middle East. Goldman Sachs predicts in a research report that gold will extend its gains to $3,000 per ounce next year. At the time of writing, spot gold has risen by around 0.3% to $2,639.78 per ounce. The Bloomberg Dollar Spot Index, after falling nearly 1% in the first three trading days, continued to decline by 0.1%. Silver has risen, palladium has fallen, and platinum has stabilized.