Tuesday, May 17

Gold rises as investors track Russia-Ukraine talks, await US CPI


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Gold firmed on Thursday after a sharp

correction in the previous session as worries over the

Russia-Ukraine crisis persisted after no progress was made in

talks between the two sides, while key US inflation data is

also likely to provide direction.

Spot gold was up 0.2% at $1,996.09 per ounce by 1047

GMT after tumbling as much as 3% on Wednesday. US gold futures

gained 0.7% to $2,002.40.

“Gold bulls have shown little qualm in catapulting prices

higher on signs the Ukraine crisis could drastically worsen the

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global economic outlook,” Han Tan, chief market analyst at

Exinity said.

The foreign ministers of Russia and Ukraine met on Thursday

in Turkey, the highest level contact between the two countries

since the war began on Feb. 24, but in simultaneous dueling

news conferences made clear they had made no progress.

A rush to safe-haven assets earlier this week due to the

Ukraine crisis powered gold prices to near record levels hit in

August 2020.

Analysts said some of that risk premium was unwound in the

last session and early on Thursday.

But gold was propped up after a rebound in shares wilted as

analysts warned of further pain for stocks with no immediate end

in sight to the war in Ukraine.

Investors are also keeping an eye on February US consumer

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price index data which is due later in the day, against the

backdrop of surging oil prices and ahead of the Federal

Reserve’s next policy statement on March 16.

Palladium , used by automakers in catalytic converters

to curb emissions, was last down 0.4% to $2,926.54 per ounce.

The metal hit a record high of $3,440.76 on Monday, driven by

fears of supply disruptions from top producer Russia.

The palladium market “should continue to price-in a supply

Risk premium in the short-term,” ANZ analysts wrote in a note.

Spot silver firmed 0.3% to $25.80 per ounce, while

platinum added 1.1% to $1,087.32.

(Reporting by Bharat Govind Gautam in Bengaluru; Editing by

Krishna Chandra Eluri)

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