Gold continues to rise and records its highest levels in a week.

Gold prices rose during trading on Tuesday as the yellow metal continued to erase losses for the second consecutive session, reaching its highest levels in a week, following the historic losses incurred last week, which pushed it to trade at its lowest levels in more than two months.

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In trading, U.S. spot gold prices rose by 0.39% or $11 per ounce, recording $2,623.01 per ounce, after touching $2,626.68 per ounce earlier in the session, the highest level for bullion since November 8. Meanwhile, December gold futures rose by 0.40% or $12 to record $2,625.10 per ounce.

What Affected Gold Movements Today?

Gold gains were driven by growing concerns among investors about the potential impact of Trump's economic policies on the global economy, which would result from the elected U.S. president imposing additional tariffs on foreign goods.

Gold prices also benefited today from the decline in U.S. Treasury bond yields, as the yields on the benchmark 10-year bonds dropped by about 0.65% or 27 basis points to record 4.387%, while the yields on two-year bonds fell by 0.33% or 14 basis points to 4.270%.

On the other hand, ongoing geopolitical tensions, particularly between the U.S. and Russia, continued to boost investors' demand for gold as a safe haven, following Russia's warning to the U.S. yesterday regarding the latter allowing Ukraine to use American-made weapons to shell Russia, with Moscow cautioning that this could lead to a direct escalation between them and the United States.