“Gold had a classic safe-haven jump on Friday … but the problem with safe-haven spikes is that they never really last that long,” said Saxo Bank analyst Ole Hansen. “In this point, gold is taking a breather waiting for more news on the geopolitical front”.
Russia could create a surprise pretext for an attack on Ukraine, the United States said on Sunday. However, Moscow denies such plans and has accused the West of “hysteria” even as it has more than 100,000 troops massed near Ukraine.
“A moderately stronger dollar is marginally weighing on the price of gold today. We expect further volatility in the short term, with prices buoyed by escalation or de-escalation news (on Ukraine),” said UBS analyst Giovanni Staunovo.
The dollar gained 0.2%, while yields on benchmark 10-year US Treasury bonds rose, raising the opportunity cost of holding interest-free gold. Among other precious metals, palladium rose 0.2% to $2,310.31 an ounce, after hitting a nearly five-month high on Jan. 31.
“It appears that the percentage of palladium that (Russia) exports as a percentage of world production is quite close to 50% and that obviously makes the metal extremely exposed to any temporary reduction in supplies from Russia should the conflict escalate. intensify from current levels,” Hansen added. Silver was up 0.5% at $23.69 an ounce and platinum was down 0.5% at $1,021.93.
Gold remains on the same page as world markets amid concerns about the escalation of the conflict. European stock markets sank up to 4%. The energy sector lost 0.5%, being the one that fell the leastafter the Oil prices hit their highest in more than seven years.
Asian markets previously set the trend with Tokyo, which closed down 2.23%, while Chinese stock markets fell more moderately (Hong Kong -1.41%, Shanghai -0.98%). In turn, the US indicators show falls of around 1% in the movements prior to the opening of the market.
Source: Ambito
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