FX.co ★ Gold rises amid geopolitical concerns

More than 100 missiles and drones were fired yesterday, which resulted in rockets landing in Poland and two deaths in an explosion in Przewodow - a village in eastern Poland about 10 kilometers from the border with Ukraine. There have been concerns that, since Poland is a member of NATO, a missile strike could lead to an expansion of hostilities in Ukraine.

Reuters reported that Ukrainian President Volodymyr Zelensky claimed the strikes on Tuesday without providing evidence that it hit Poland, which is a NATO country. Pentagon and the US State Department, meanwhile, said they could not confirm the report, but were working with the Polish government to gather information. The State Department acknowledged that the report was incredibly disturbing.

Geopolitical tensions in Ukraine are now in their ninth month, exacerbated by a major wave of missile strikes. This latest missile attack on Poland, if confirmed, will trigger the articles of the NATO treaty, under which NATO members will meet to assess the threat and, if necessary, take concrete action.

NATO Secretary General Jens Stoltenberg said that Ukraine must decide what terms are acceptable for negotiations to end hostilities, which raised geopolitical uncertainty in the region to a new heightened level. This supported gold prices, which rose $4.90 due to the events.

The dollar index, on the other hand, is trading downwards by 0.10% and settled at 106.13.