Russia's hypersonic missile launch sparks risk

Early Friday (November 22) in the Asian market,Is foreign exchange a formal platform spot gold experienced slight fluctuations, currently reported at $2,669.18 per ounce. This week, the gold market sentiment has been buoyant, with gold prices rising for the fourth consecutive day on Thursday, hitting a two-week high of $2,673.38 per ounce. The main driver behind the rise in gold prices is Russia's launch of hypersonic medium-range ballistic missiles targeting Ukrainian military facilities, simultaneously issuing a stern warning to the West, heightening market concerns over geopolitical risks.

On Thursday, Russian President Putin stated that Russia tested the latest "Oreshnik" (code-named "Hazel") hypersonic missile system under combat conditions. This action was described by Putin as a response to the United States and the United Kingdom providing long-range weapon support to Ukraine. He pointed out that this conflict is gradually escalating into a global confrontation, and Russia will not hesitate to strike military facilities in countries that pose a threat to its security.

Putin elaborated that on November 21, Russia conducted a joint strike on a facility within the Ukrainian military-industrial complex, testing a new medium-range missile system that includes non-nuclear hypersonic equipment. This statement has intensified market concerns about the further escalation of the Russia-Ukraine conflict, significantly increasing the demand for safe-haven assets.

Meanwhile, the holdings of the world's largest gold ETF, SPDR, have also shown growth. Data reveals that SPDR gold holdings increased by 2.58 tons on Thursday, reaching 877.97 tons, the highest level since November 8, registering growth for five consecutive trading days, indicating increased demand for gold from institutional investors.

However, market bears should not be ignored. Despite risk aversion driving up gold prices, the rising US dollar index and US Treasury yields still pressure gold. Strong performance in economic data such as US initial jobless claims and hawkish remarks from Federal Reserve officials have provided support for the dollar. If gold prices fail to break through the key resistance level of the 21-day moving average ($2,676.47 - $2,680), investors should be wary of a possible bearish counterattack.

Currently, the market focus remains on the latest developments in the Russia-Ukraine conflict and further guidance on Federal Reserve monetary policy. As a safe-haven asset, gold is being tugged by various forces, and its trajectory remains highly uncertain.

Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

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