KARACHI: Gold prices continued their upward momentum on Wednesday, marking a one-week high as investors sought the safety of the precious metal amid growing geopolitical uncertainty, particularly the escalating Russia-Ukraine conflict.

Spot gold rose 0.6%, reaching $2,646.79 per ounce, its highest level since November 11. U.S. gold futures also saw a 0.8% increase, trading at $2,650.60. The surge in gold prices came after Russian President Vladimir Putin expanded the scope of potential nuclear strikes, fueling fears and boosting demand for safe-haven assets. “This has clearly sparked safe-haven interest,” said Peter Grant, senior metals strategist at Zaner Metals. However, he noted that the strength of the U.S. dollar, which rebounded after a three-day dip, could limit gold’s gains, making it more expensive for international buyers. Investor focus is also shifting to upcoming remarks from Federal Reserve officials, as market expectations for a rate cut in December have significantly declined. With the probability of a rate pause now at 55.5%, down from 82.5% last week, analysts suggest that while this could temper short-term gold gains, broader geopolitical and macroeconomic uncertainties, combined with solid physical demand, should support gold prices.