Gold surges as USD shows resilience; Russia-Ukraine tensions escalate

Gold maintains its bullish momentum during European trading hours, supported by escalating geopolitical tensions following drone incursions into Poland from the Russia-Ukraine conflict. The precious metal trades near recent highs as investors seek safe-haven assets. Despite gold's strength, the US dollar displays unexpected resilience, potentially signaling a bottom formation. Currency markets remain relatively muted with major pairs trading in tight ranges ahead of crucial US PPI data release. EU Commission President von der Leyen has called for additional sanctions on Russia, adding to market uncertainty. US MBA mortgage applications data for the week ending September 6th showed mixed results, reflecting ongoing housing market challenges. Traders are positioning cautiously as geopolitical risks intensify while awaiting US inflation indicators that could influence Federal Reserve policy decisions and broader market sentiment.