Gold ticks higher as Ukraine war weighs on risk sentiment
By Asha Sistla
(Reuters) – Gold costs edged larger on Monday, because the struggle in Ukraine and risk-off sentiment in wider inventory markets bolstered safe-haven demand for the steel, though elevated U.S. Treasury yields after robust March jobs information restricted bullion’s features.
Spot gold XAU= was up 0.1% at $1,926.56 per ounce by 0946 GMT. U.S. gold futures GCv1 rose 0.4% to $1,930.70.
“We’ve not seen any progress within the peace talks and negotiations between Russia and Ukraine, so we now have seen a modest return of the risk-off state of affairs, which is lifting gold costs,” stated Carlo Alberto De Casa, an exterior market analyst at Kinesis.
“Gold worth is transferring in a lateral buying and selling vary… The primary directional sign would arrive solely when gold can leap above $1,950 or fall under $1,900.”
Ukraine accused Russia of struggle crimes, overshadowing their peace talks due on Monday. In the meantime, Germany stated the West would conform to impose extra sanctions on Moscow, inflicting share markets to show cautious. (Full Story) (Full Story) MKTS/GLOB
Additional features within the bullion have been, nonetheless, capped as Friday’s strong jobs report for March cemented expectations of larger rate of interest hikes by the U.S. Federal Reserve.
The greenback index =USD was buoyed as U.S. two-year Treasury yields climbed to their highest since early 2019. USD/ US/
Gold is very delicate to rising U.S. rates of interest, which enhance the chance value of holding non-yielding bullion whereas boosting the greenback, during which it’s priced.
Traders are wanting ahead to any dialogue of a 50 foundation level fee hike when the Fed releases minutes from its March assembly on Wednesday.
“Hawkish Fed pricing and rhetoric to damp inflation, although a cap on gold cheer to a level, can assist the narrative for a ‘slower development threat’ bullion bid in the interim,” Citi Analysis stated in a notice.
Spot silver XAG= gained 0.4% to $24.71 per ounce, platinum XPT= rose 0.4% to $989.81, and palladium XPD= jumped 2.1% to $2,324.16.
(Reporting by Eileen Soreng in Bengaluru; Enhancing by Subhranshu Sahu)
