Business Standard

Gold prices rise on weaker dollar, caution on Russia-Ukraine talks

Spot silver XAG= and platinum XPT= both rose 0.5% to $24.86 per ounce and $987.39 respectively

Photo: Andrey Rudakov/Bloomberg

Photo: Andrey Rudakov/Bloomberg

Gold rose on Wednesday, buoyed by a weaker dollar and a slight pullback in U.S. bond yields, while investors awaited more details from Russia-Ukraine talks in Turkey. Spot gold XAU= rose 0.3% to $1,924.40 per ounce by 1149 GMT. U.S. gold futures GCv1 were up 0.6% to $1,929.00.
On Tuesday, gold prices dropped as much as 1.8% to their lowest level since February 28 on signs of progress in negotiations between Russia and Ukraine before recovering to close only 0.2% lower on the day.
"The war premium seems to be eroding out of the gold price to some extent," independent analyst Ross Norman said, adding gold's strong bounce off $1,890 was encouraging.
Russia on Tuesday pledged to cut down on military operations around Kyiv and in northern Ukraine. However, Ukraine and its Western allies dismissed a Russian military pullback from near Kyiv as a ploy to refit troops after heavy losses. (Full Story) (Full Story)
City Index senior market analyst Matt Simpson said investors remain wary of Russia's intentions. The U.S. dollar =USD fell 0.5% to a near two-week low against its rivals, making greenback-priced gold less expensive for other currency holders. USD/
Yields on the benchmark U.S. 10-year Treasury note also eased, reducing the opportunity cost of holding zero-yield bullion. US/ The U.S. Treasury yield curve inverted on Tuesday for the first time since 2019, as investors priced in an aggressive rate-hiking plan by the Federal Reserve as it attempts to bring inflation down from 40-year highs. (Full Story)
Meanwhile, holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, slipped 0.2% to 1,091.44 tonnes on Tuesday. GOL/ETF. Spot silver XAG= and platinum XPT= both rose 0.5% to $24.86 per ounce and $987.39 respectively.
Palladium XPD= gained 2.3% to $2,198.98 after dipping to a more than two-month low of $2,032.97 in the last session.

(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: Mar 30 2022 | 7:31 PM IST

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