Gold is consolidating, with the high probability that the US Federal Reserve will raise interest rates adding some pressure, as investors await developments in Ukraine, said Brian Lan, managing director of dealer GoldSilver Central.
Inflation in the United States soared in February, according to data on Thursday, suggesting a rise in interest rates next week, which in turn would translate into an increase in the opportunity cost of holding bullion.
While strong yields are dragging down gold, which is holding for breath for now, a rally in Ukraine would throw technicals “out the window”, said Michael Hewson, chief market analyst at CMC Markets UK.
Investors have sought safe-haven assets as the Ukrainian crisis deepened, pushing gold prices closer to record highs hit in August 2020 on Tuesday, but the rally has since slowed.
Investors are trying to get a fair price on gold and palladium, given the riskiness of the news, Hewson said, adding that “anyone who says they can anticipate where gold or anything will be a week from now is being dodgy. the facts”.
Spot palladium was up 0.9% at $2,955.62 an ounce. The metal hit an all-time high earlier this week on fears of a supply disruption from top producer Russia, which is under Western sanctions over its invasion of Ukraine.
Silver was down 0.2% at $25.82 an ounce. Platinum was up 0.2% at $1,070.65, but faced its biggest weekly drop since November.
By Bharat Gautam, from Reuters agency
Source: Ambito
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