Global Markets React as Russia Deploys New Ballistic Missile in Ukraine Conflict

In a significant escalation of the ongoing conflict in Ukraine, Russia launched a new medium-range ballistic missile against the central Ukrainian city of Dnipro on November 21, 2024. Russian President Vladimir Putin confirmed the deployment during a televised address from the Kremlin, broadcast by the state agency Sputnik.

The missile, dubbed "Oreshnik" by Russian forces, represents a notable advancement in Russia's military capabilities. Putin described it as a "non-nuclear hypersonic" weapon, emphasizing that the test was successful and achieved its intended objectives. The strike targeted Ukrainian defense facilities, with Russia claiming the action was in direct response to Ukraine's use of American and British long-range weapons.

During his address, Putin issued a stark warning, asserting Moscow's perceived right to target military assets belonging to nations that permit their weapons to be used against Russia. This declaration comes in the wake of the United States and NATO recently relaxing restrictions on Ukraine's use of foreign-supplied missiles, which led to Ukraine's first attack on Russian territory using Western-provided weaponry earlier this week.

Ukrainian President Volodymyr Zelensky responded to the missile launch, characterizing it as a "clear and severe escalation in the scale and brutality of this war." The incident marks another critical turning point in the conflict, which has now surpassed 1,000 days.

The escalation has triggered significant reactions in global financial markets, particularly in the precious metals sector. Gold prices have recorded gains for four consecutive sessions, with December futures reaching $2,671.90, marking an $18.10 increase. This follows substantial gains of $18.00, $19.60, and $48.70 in the previous three sessions, respectively. Simultaneously, the U.S. dollar index has strengthened, climbing to 107.136 after gains of 0.45% and 0.40% over two days.

The concurrent rise in both gold and the U.S. dollar reflects intense safe-haven buying as investors seek shelter from geopolitical uncertainty. Market analysts suggest that if tensions continue to escalate between Russia and Ukraine, both assets may see further appreciation as investors prioritize safety in their portfolios.