Gold prices rise amid dollar weakness, cautioned about Russia-Ukraine talks

Gold rose on Wednesday, supported by a weak dollar and a slight dip in US bond yields, while investors awaited more details from Russia-Ukrainian talks in Turkey. Spot XAU Gold = rose 0.3% to $1,924.40 an ounce by 1149 GMT. US GCv1 gold futures rose 0.6% to $1,929.00.

Gold prices fell 1.8% on Tuesday to their lowest level since February 28 on signs of progress in negotiations between Russia and Ukraine before recovering to close just 0.2% lower on the day.

“The war premium appears to be eroding the gold price somewhat,” independent analyst Ross Norman said, adding that gold’s strong rebound from $1,890 was encouraging.

Russia pledged on Tuesday to reduce military operations around Kyiv and northern Ukraine. However, Ukraine and its Western allies rejected the Russian military withdrawal from near Kyiv, calling it a ploy to re-equip troops after heavy losses. (full story) (full story)

Investors remain wary of Russia’s intentions, Matt Simpson, chief market analyst at City Index, said. The US dollar = the US dollar fell 0.5% to approach a two-week low against other currencies, making gold priced in US dollars less expensive for holders of other currencies. American dollar/

It also lowered benchmark 10-year US Treasury yields, reducing the opportunity cost of holding zero-yield bullion. The US Treasury yield curve inverted on Tuesday for the first time since 2019, as investors priced in a plan to raise interest rates by the Federal Reserve as it tries to bring down inflation from 40-year highs. (Full Story)

Meanwhile, holdings of the world’s largest gold-backed trading fund, the SPDR Gold Trust, fell 0.2% to 1,091.44 tons on Tuesday. GOL/ETF. Spot silver XAG= and XPT platinum= both rose 0.5% to $24.86 an ounce and $987.39, respectively.

Palladium XPD = 2.3% gain at $2,198.98 after falling to a two-month low of $2,032.97 in the last session.

(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 determination and our 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 *