Gold records best quarter in nearly two years on Ukraine war, inflation fears

By Brijesh Patel

(Reuters) – Gold on Thursday headed for its best quarter since the coronavirus pandemic-led rally in mid-2020, as concerns about rising consumer prices and the Ukraine crisis boosted bullion’s safe-haven appeal.

Gold XAU = up 0.4% at $1,941.11 an ounce by 10:45 AM ET (1445 GMT). For the month, bullion is up about 1.8%.

US GCv1 gold futures rose 0.3% to $195.40.

“The geopolitical situation has been in flux for a month and inflation data continues to rise. So the general sentiment in this market right now is people looking for safety,” said Bob Haberkorn, chief market analyst at RGO Futures.

Gold is considered a safe investment in times of political and financial uncertainty.

Data showed US consumer spending slowed significantly in February, while price pressures continued to mount, with the largest annual rise in inflation since the early 1980s. (Full Story)

The Russian invasion, which began on February 24, pushed up the price of oil and industrial minerals.

“We could see a pullback in gold if there is some positive news out of the Russia-Ukraine conflict, but I think traders will look at that as a buying opportunity due to inflation concerns,” Haberkorn said.

The Federal Reserve has hinted at big rate hikes this year to fight high inflation, which investors fear could send the US economy into a recession. we/

The decline in US 10-year Treasury yields on Thursday also supported gold. we/

Silver XAG = Gained 0.6% to $24.99 an ounce. XPT Platinum = down 0.9% to $981.04. Both metals are set to post quarterly gains.

Palladium XPD = up 0.6% to $2,280.63 and is headed for its biggest quarterly jump since March 2020.

The auto-catalyst hit a record high of $3,440.76 an ounce earlier this month after the West imposed sanctions on Russia, before giving up most of the gains as supply concerns faded. (Full Story)

(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.)

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