Gold prices are preparing for weekly gains as the conflict between Russia and Ukraine deepens

Gold was set on Friday for its third weekly gain in four, as a lack of tangible progress in peace talks between Russia and Ukraine lifted the safe-haven metal, despite higher US yields on fears of strict tightening measures affecting the attractiveness of the metal. alloys.

Spot gold settled at $1,955.80 an ounce by 0805 GMT, adding nearly 2% so far this week. US gold futures fell 0.4 percent to $1,955.10.



“I will dedicate the latest gold gains to concerns about Ukraine starting to creep back in because we didn’t make the kind of progress in the talks that I think the markets were hoping for around the beginning of the month,” said Ilya Spivak. Currency Strategist at DailyFX.

Ukrainian President Volodymyr Zelensky said on Friday that Ukrainians “need to make peace” and stop Russian bombing that has forced millions to flee to countries like Poland.

Rising tensions in Ukraine have fueled geopolitical uncertainty and demand for safe haven assets such as gold.

“But the increase in yields and the perception of the Fed as being somewhat aggressive has prevented this bounce from gaining any meaningful momentum,” Spivack said.

The US Federal Reserve raised borrowing costs by 25 basis points on March 16, and since then the central bank’s top policy makers have signaled a more aggressive approach to tighten monetary policy this year to combat rising inflation.

US 10-year Treasury yields remained close to 2019 highs, reducing the opportunity cost of holding unpaid bullion. [US/]

Jeffrey Halley, chief analyst at OANDA, said in a note, while referring to long gold – the term for price action.

Spot silver settled at $25.50 an ounce, while platinum rose 0.4% to $1024.20, and palladium rose 0.2% to $2,528.26.

(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.)

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