Gold traded in a tight range on Friday
as the dollar climbed higher on prospects of aggressive interest
rate hikes by the US Federal Reserve, partially offsetting
safe-haven demand fueled by the heightened Russia-Ukraine
Spot gold was flat at $1,929.52 per ounce by 0520
GMT. US gold futures were down 0.3% at $1,931.90.
“Gold has held up relatively well this week given the move
higher by both US yields and the US dollar, we may be seeing
some underlying haven and inflation hedging buying supporting
the downside,” said OANDA senior analyst Jeffrey Halley.
The US dollar climbed to a near two-year high against a
basket of currencies and set for its best week in a month,
backed by hawkish remarks from several Federal Reserve policy
makers who are calling for a faster pace of interest rate
increases to curb rapid inflation.
A stronger US dollar makes gold less attractive for other
The benchmark US 10-year Treasury yield touched a
three-year high in the previous session, increasing the
opportunity cost of holding non-yielding bullion.
Gold, however, is being supported by the Ukraine
uncertainty, rapid inflation, and the still persistent COVID-19
pandemic but the Fed’s aggressive stance to combat inflation,
recovering bond yields, stronger dollar and easing of pandemic
restrictions on higher vaccination rates will put a lid on gold
prices, Fitch Solutions said in a note dated April 7.
Russia gave the most somber assessment so far of its
invasion of Ukraine, describing the “tragedy” of mounting troop
losses and the economic hit from sanctions, as Ukrainians were
evacuated from eastern cities before an anticipated major
Spot silver was flat at $24.57 per ounce.
Platinum was down 0.2% at $961.05 and palladium
rose 1.5% to $2,267.55. Both metals were set for a
fifth-consecutive weekly loss.
(Reporting by Asha Sistla in Bengaluru; Editing by Sherry