Saturday, May 21

Gold flat as stronger dollar counters Ukraine worries


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Gold prices were unchanged on Thursday

as the dollar gained and yields hovered near multi-year peaks,

offsetting support from an escalation in the Ukraine crisis.

FUNDAMENTALS

*Spot gold was little changed at $1,943.75 per ounce

by 0131 GMT. US gold futures were up 0.4% to $1,944.40.

* The dollar index gained on Wednesday, making gold less

attractive for other currency holders, as oil prices shot higher

again with US President Joe Biden and other European leaders

set to impose fresh sanctions against Russia.

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* The benchmark 10-year Treasury yield hovered close to

Wednesday’s peak since May 2019.

* Gold is sensitive to higher yields, which increase the

opportunity cost of holding non-yielding bullion.

* Russian President Vladimir Putin’s threat to switch

certain gas sales to roubles sent European futures soaring on

concerns the move would exacerbate an energy crunch and jam up

deals that run to hundreds of millions of dollars every day.

* Holdings of the world’s largest gold-backed

exchange-traded fund, SPDR Gold Trust rose 0.4% to 1,087.66

tonnes on Wednesday – its highest since Feb. 26, 2021.

* Palladium , used by automakers in catalytic

converters to curb emissions, added 1.5% to $2,549.34 per ounce.

* Spot silver was up 0.1% to $25.08 per ounce, while

platinum shed 0.3% to $1,016.99.

DATA/EVENTS (GMT)

0745 France Business Climate Mfg March

0815 France Markit Comp, Serv, Mfg Flash PMIs March

0830 Germany Markit Comp, Serv, Mfg Flash PMIs March

0900 EU Markit Comp, Serv, Mfg Flash PMIs March

0930 UK Flash Comp, Serv, Mfg PMIs March

1230 US Initial Jobless Clm Weekly

1230 US Durable Goods Feb

1345 US Markit Comp, Serv, Mfg Flash PMIs March

(Reporting by Asha Sistla in Bengaluru; editing by Uttaresh.V)



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