Gold flat as Fed rate hike, Ukraine peace talks dent appeal
FUNDAMENTALS
* Spot gold held its ground at $1,929.57 per ounce, as of 0128 GMT, after touching its lowest since Feb. 28 at $1,894.70 on Wednesday. U.S. gold futures rose 1% to $1,928.40.
* The U.S. central bank raised interest rates for the first time since 2018 and laid out an aggressive plan to stamp out inflation, while flagging the massive uncertainty the economy faces from the war in Ukraine and the COVID-19 health crisis.
* Gold is highly sensitive to rising U.S. interest rates, which increase the opportunity cost of holding non-yielding bullion.
* Fed’s rate decision lifted the U.S. 10-year Treasury yields to their highest since May 2019.
* Investors focused on peace talks between Russia and Ukraine as the world hopes for a diplomatic solution. Ukrainian President Volodymyr Zelenskiy said negotiations were becoming “more realistic” and Russia said proposals under discussion were “close to an agreement.”
* Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.8% to 1,070.53 tonnes on Wednesday – its highest since March 2021.
* Palladium , used by automakers in catalytic converters to curb emissions, rose 1.8% to $2,452.33 per ounce.
* The auto-catalyst metal hit a record high of $3,440.76 on March 7, driven by fears of supply disruptions from top producer Russia.
* Spot silver was up 0.3% at $25.13 per ounce, while platinum rose 0.7% to $1,024.32.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.