Business Standard

Gold slips from $1,900 as potential Russia-US talks dull appeal

U.S. gold futures dropped 0.5% to $1,892.70.

Photo: Bloomberg

Photo: Bloomberg

Reuters
Gold prices retreated on Friday, after breaking above the key $1,900 level for a second consecutive session, as a Russia-U.S. meeting next week slowed investors' dash to the safety of bullion.
Spot gold fell 0.3% to $1,890.77 per ounce, as of 0308 GMT, after touching its highest in eight months at $1,902.22 earlier in the session.
U.S. gold futures dropped 0.5% to $1,892.70.
U.S. stock futures bounced on Friday and selling pressure eased in Asian share markets after the U.S. Secretary of State agreed to a meeting with Russia's foreign minister, raising hopes for a diplomatic solution to the East-West standoff over Ukraine. [MKTS/GLOB]
One of the deepest crises in post-Cold War relations is playing out in Europe as Russia wants security guarantees, including Kyiv never joining NATO, and the U.S. and allies offer arms control and confidence-building measures.
"We are seeing gold in extension of that invasion trade, said IG Markets analyst Kyle Rodda and "the next technical level to watch is around $1,920, so there's certainly technical basis to see gold prices rise."
On Thursday, gold rose as much as 1.8%, breaking past $1,900/oz for the first time since June 11, with analysts expecting a further rally if tensions continue to escalate, and vice-versa.
U.S. 10-year Treasury yields firmed, increasing the opportunity cost of holding non-interest-paying bullion. [US/]
Spot gold, however, is set for a third straight weekly gain, up about 1.7% so far.
"In the short term, bullion market inflows have clearly been buttressed by Russia/Ukraine geopolitics, higher equity market vols, and inflation hedge demand," analysts at Citi said in a note.
Spot silver was little changed at $23.80 per ounce and palladium dipped 0.7% to $2,349.52, with both set for small weekly gains.
Platinum gained 0.3% to $1,091.95, setting up its best weekly showing since June.
 
(Reporting by Bharat Govind Gautam in Bengaluru; Editing by Shailesh Kuber and Rashmi Aich)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Feb 18 2022 | 10:50 AM IST

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