Gold rises on escalation of tensions in Eastern Europe

Gold prices continued to increase on Wednesday due to heightened worries of possible escalation of tensions in the East of Europe. The situation there getting more and more complicated has caused the growth of demand for traditional safe haven assets.

Further aggravation of the conflict will likely continue having notable impact on gold prices, boosting their growth.

According to the information provided by Investing.com, bullion prices were also affected by the weakened dollar after the latest release of data that demonstrated 14-months-record low levels of producer inflation in the U.S.

Such circumstances might prompt the Federal Reserve system to soften its hawkish attitudes. Specialists forecast that the next rate hikes might be delivered in a relatively smaller volume next month.