Gold prices are heading for a weekly rise with the demand for safe haven

By Brijesh Patel

(Reuters) – Gold was on course for the week as war fears in Ukraine and rising prices boosted its appeal as a safe haven and inflation hedge, but prices fell on Friday as US Treasury yields soared to new highs.

Spot XAU Gold = down 0.1% at $156.19 an ounce by 12:44 PM ET (1644 GMT).

US GCv1 gold futures fell 0.3% to $1,955.70.

With the help of the monetary tightening forecast by the US Federal Reserve, US10YT=RR 10-year Treasury yields have held near multi-year highs, increasing the opportunity cost of holding zero-yield bullion. we/

“If interest rates continue to rise at a rapid pace, that could limit the rally in precious metals,” said Chris Gaffney, head of global markets at Tia Bank. .N MKTS / GLOB

“However, the general tone of the market remains supportive of precious metals. There are safe haven buying and also as an inflation hedge from the retail side. We are seeing clients coming in in order to add gold diversification to their portfolios,” Gaffney said. GOL / ETF

The Fed raised borrowing costs for the first time in three years last week, and traders are pricing in the prospect of a 50 basis point rate hike during the Fed’s policy meeting in May. FEDWATCH

Gold, seen as a safe investment in times of political and financial uncertainty, is up about 1.8% this week as investors try to hedge against the impact of the war in Ukraine and rising oil prices that threaten global growth.

“Don’t be surprised to see some safe haven and haggling buying,” Jim Wyckoff, chief analyst at Kitco Metals said in a note.

Spot Silver XAG = down 0.3% to $25.44 an ounce, but was on track for a weekly rise of about 2%.

Platinum XPT= down 1.7% to $1,002.80 an ounce, and palladium XPD= down 5.7% at $2380.20, both down for the third time in a week.

(Reporting by Brijesh Patel in Bengaluru; Editing by Vinay Dwivedi)

(The title and image for this report may have been reformulated only by the Business Standard staff; the rest of the content is automatically generated from a shared feed.)

Dear Reader,

Business Standard has always strived to provide the latest information and commentary on developments that matter to you and that have broader political and economic implications for the country and the world. Your continued encouragement and feedback on how we can improve our offerings has made our resolve and commitment to these ideals even stronger. Even during these challenging times brought about by Covid-19, we continue our commitment to keeping you updated with trusted news, authoritative opinions and insightful commentary on relevant topical issues.
However, we have a request.

As we battle the economic impact of the pandemic, we need your support even more, so we can continue to bring you more quality content. Our subscription form has seen an encouraging response from many of you, who have subscribed to our content online. Further subscribing to our online content can only help us achieve our goals of providing better and more relevant content. We believe in free, fair and credible journalism. Your support with more subscriptions can help us practice the journalism we are committed to.

Support quality press and Subscribe to Business Standard.

digital publisher

Leave a Reply

Your email address will not be published. Required fields are marked *