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