Gold set for weekly gain on Ukraine worries
Gold prices were set on Friday for a third weekly gain in four, as no material progress in Russia-Ukraine peace talks supported the safe-haven metal, although a spike in U.S. yields on fears of aggressive tightening measures dented bullion`s appeal.
Gold prices were set on Friday for a third weekly gain in four, as no material progress in Russia-Ukraine peace talks supported the safe-haven metal, although a spike in U.S. yields on fears of aggressive tightening measures dented bullion`s appeal.
Spot gold was up 0.2% at $1,961.99 per ounce, as of 0332 GMT, hovering close to a more than one-week high scaled in the previous session, and adding nearly 2% so far this week. U.S. gold futures were flat at $1,963.40.
See Zee Business Live TV Streaming Below:
"I would assign the most recent gold gains to concerns about Ukraine starting to creep back in because we haven`t had the kind of progress on talks that I think markets were hoping for around the beginning of the month," said Ilya Spivak, a currency strategist at DailyFX.
Western leaders piled on military and humanitarian aid for Ukraine on Thursday and denounced Moscow`s invasion of its neighbour as "barbarism" as thousands in besieged cities sheltered underground from Russian bombardment.
"But the surge in yields and the Fed being seen as rather aggressive, that`s kept that bounce from really gaining any meaningful momentum. It`s trying, but looks like the Fed story is capping its ability to extend higher," Spivak said.
The U.S. Federal Reserve raised borrowing costs by 25 basis points on March 16, and since then top central bank policymakers have signalled a more aggressive approach to monetary policy tightening this year to fight rising inflation.
Yields on the U.S. 10-year Treasury note stayed close to their 2019 highs.
Higher yields and interest rates reduce the opportunity cost of holding non-paying bullion.
Spot gold may retest a resistance at $1,967 per ounce, according to Reuters` technical analyst Wang Tao.
Spot silver rose 0.6% to $25.66 per ounce, while platinum gained 1% to $1,030.45 and palladium was flat at $2,523.01.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
Top 5 Small Cap Mutual Funds with best SIP returns in 1 year: See how Rs 25,000 monthly investment has grown in each scheme
Top 7 SBI Mutual Funds With Best SIP Returns in 1 Year: Rs 25,000 monthly SIP investment in No.1 fund has jumped to Rs 3,58,404
11:51 AM IST