Report

rss

Iraq News

Kurdistan

Economy

World

All News

PRECIOUS-Gold muted as Fed caution counters Ukraine risks

Category: Economy

Date: 2022-01-25T07:20:02+0000
PRECIOUS-Gold muted as Fed caution counters Ukraine risks

Shafaq News/ Gold prices were steady on Tuesday, as concerns about a faster pace of policy tightening by the U.S. central bank countered safe-haven demand fuelled by escalating tension over Ukraine.

Spot gold was little changed at $1,841.44 per ounce by 0512 GMT. U.S. gold futures were also steady at $1,842.10.

Key factors affecting gold prices are risk-off sentiment due to the tension, rising Treasury yields on Fed tapering expectations and hedge funds reducing net long positions, said Michael Langford, director at corporate advisory AirGuide.

"The market does not know which way a potential conflict in Ukraine will affect global markets," Langford said. "There is a massive amount of speculation taking place and (I) expect gold prices to remain volatile in the short term."

On Monday, NATO said it was putting forces on standby and reinforcing eastern Europe with more ships and fighter jets, in what Russia denounced as Western "hysteria" in response to its build-up of troops on the Ukraine border.

Investors are focused on the Fed's two-day policy meeting starting later in the day, amid expectations the U.S. central bank will signal plans to raise rates by 25 basis points in March.

Gold is generally seen as an inflationary hedge, but it is highly sensitive to rising U.S. interest rates, which increase the opportunity cost of holding non-interest bearing bullion.

"Gold could be trading more on near-term inflation dynamics as well as some scepticism about the potential for inflation to normalize as dramatically as markets imply over the long-term," J.P. Morgan analysts said in a note.

Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, rose to their highest since late August 2021 last Friday.

Spot silver fell 0.7% to $23.79 an ounce. Palladium shed 0.5% to $2,137.00 and platinum slipped 0.8% to $1,018.50.

Source: Reuters

related

Gold Slips as Dollar, Yields Strengthen on Robust U.S. Jobs Data

Date: 2022-04-04 09:02:49
Gold Slips as Dollar, Yields Strengthen on Robust U.S. Jobs Data

Gold prices drop in the Iraqi capital today

Date: 2021-12-22 10:22:48
Gold prices drop in the Iraqi capital today

PRECIOUS-Gold prices hit 5-month peak on weaker dollar, inflation worries

Date: 2021-06-01 08:10:26
PRECIOUS-Gold prices hit 5-month peak on weaker dollar, inflation worries

Gold hits two-week high as U.S. stimulus hopes pressure dollar

Date: 2021-01-21 10:51:51
Gold hits two-week high as U.S. stimulus hopes pressure dollar

Gold prices in the Iraqi local markets today

Date: 2021-08-24 09:37:04
Gold prices in the Iraqi local markets today

Gold price hits near 2-week low as US bond yields, dollar firm

Date: 2022-06-01 06:25:02
Gold price hits near 2-week low as US bond yields, dollar firm

Gold inched up in Iraq today

Date: 2021-07-06 09:14:40
Gold inched up in Iraq today

Gold prices in the Iraqi local markets today

Date: 2021-02-25 08:38:19
Gold prices in the Iraqi local markets today