SINGAPORE — Gold added to overnight gains on
Wednesday on a softer dollar and heightened tension after Turkey shot
down a Russian warplane, but the rally was capped on the expectation of a
US rate hike in December.
Turkey shot down the Russian jet near
the Syrian border on Tuesday, saying the plane had violated its air
space, in one of the most serious publicly acknowledged clashes between a
North Atlantic Treaty Organisation (Nato) member country and Russia for
half a century. US President Barack Obama and French President François
Hollande, meeting in Washington, urged against an escalation, while
Nato secretary-general Jens Stoltenberg said the military alliance stood
in solidarity with Turkey. The tension triggered a sell-off in equities
and the dollar, while boosting the safe-haven yen, gold and government
debt.
