• US dollar’s slide has also assisted precious metal’s rally

• Bullion has rallied by more than a quarter during 2024

Gold held a two-day climb, with rising demand for haven assets following an escalation of tensions in Russia’s war against Ukraine.

Bullion traded above $2,638 an ounce after advancing by more than 2% over the first two days of the week. On Tuesday, gold gained along with US Treasuries after President Vladimir Putin approved an updated nuclear doctrine that expanded conditions for using atomic weapons and Ukraine made its first strike with American missiles in Russia. Investors typically seek safety in the precious metal at times of geopolitical and economic uncertainty.

Gold’s strength this week has also been assisted by a slide in the US dollar, which has rolled back some of the strong gains made by the currency in the wake of Donald Trump’s victory in the presidential election.

Bullion has rallied by more than a quarter this year, with gains underpinned by central-bank buying, the Federal Reserve’s pivot to monetary easing, and geopolitical tensions in Europe as well as the Middle East. Goldman Sachs Group Inc. has backed the metal to extend its advance to $3,000 an ounce next year.