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Gold prices set for weekly gain as Ukraine conflict deepens -Breaking


© Reuters. FILE PHOTO – 99.99% pure gold ingots are placed on a cart in Krastsvetmet, Russia’s non-ferrous metals facility. They were placed there March 10th 2022. REUTERS/Alexander Manzyuk/

By Asha Sistla

(Reuters] – Friday’s gold gain was the third in four weeks. The lack of progress in Russia-Ukraine talks lifted the metal as a safe haven. But, a surge in U.S yields due to concerns about tightening, has weakened bullion’s appeal.

By 0805 GMT the price per ounce had held steady at $1955.80, up nearly 2% this week. The U.S. lost 0.4% to $1.955.10.

Ilya Spiek, currency strategist at DailyFX said that the latest gold gains were due to fears about Ukraine creeping back in. “We haven’t made the progress we hoped for since the beginning of this month,” she stated.

Volodymyr Zeleskiy, the President of Ukraine said Friday that Ukraine must “achieve peace” and stop Russian bombardment. This has led to millions fleeing to Poland.

The rising tensions in Ukraine has fueled geopolitical uncertainty as well as the demand for safe haven assets, such gold.

Spivak stated that the Fed’s aggressiveness and the rise in yields have prevented the bounce from gaining meaningful momentum.

U.S. Federal Reserve hiked borrowing costs 25 basis points March 16. Since then, central bank officials have taken a stronger stance on monetary policy to reduce rising inflation.

The yields of the U.S. 10-year Treasury Note remained close to 2019 highs. This reduced the chance cost of owning non-paying bullion. [US/]

Jeffrey Halley, OANDA’s senior analyst, stated that gold prices have shown a tendency to climb up stairs and jump from the window at the 10th floor. He also referred to the long-term movement of gold’s price.

Spot silver was steady at $25.50 an ounce. Platinum rose 0.4% at $1,024.20, and palladium was 0.2% higher at $2,528.26.

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