Gold prices rose in trading on Thursday, in conjunction with the continuing conflict between Russia and Ukraine, which boosted demand for the precious metal as a safe haven.
Yesterday, Wednesday, gold prices ended down by more than $21, recording the first drop in 3 sessions, coinciding with the rise of the dollar and US stocks.
Gold Prices Today
The price of gold futures contracts – for delivery in April – rose by 0.55%; the equivalent of $6.60; To reach the level of $ 1934.90 an ounce.
The spot price for the yellow metal also rose by 0.22%, to reach $1,934.92 an ounce.
At the same time, the price of silver futures contracts – for May delivery – increased by more than 1.11%, recording $25.37 an ounce.
While the spot platinum price rose by 1.51% at $1089.16 an ounce, while the spot palladium price jumped by 2.04%, to record $2720.58 an ounce.
Kharkiv, Ukraine’s second-largest city, was heavily bombed on Wednesday, as the United States issued a new round of sanctions that will make it difficult for Russia to modernize its oil refineries.
Asian stocks gained gains after reassuring statements from the US Federal Reserve to raise interest rates “cautiously” at its next meeting in March.
Russian gold and silver producer Polymetal suspended its cost and capital expenditure guidance for 2022 amid the conflict in Ukraine, but kept its production forecast at 1.7 million ounces of gold equivalent, a mixture of gold and other metals, unchanged.
Russia is the world’s third largest producer of gold after Australia and China, and gold miners mainly sell their gold to the country’s commercial banks.
Russia’s central bank resumed purchases of gold on the domestic market on Monday, as part of measures to try to ensure financial stability during Western sanctions against Moscow for its invasion of Ukraine.
“The potential for higher interest rates from better economic activities is clearly negative for gold as it is overshadowed by geopolitical concerns,” said Michael McCarthy, chief strategist at Tiger Brokers.
Although gold is considered a safe investment during political and economic uncertainty; Higher US interest rates increase the opportunity cost of holding bullion.
“At some point, the reality of a better economic outlook will affect gold, so one possible scenario is a rush to those all-time highs, over the next two weeks, before the gravitational effect of higher interest rates starts to drive gold prices down again,” McCarthy added.
Simultaneously, prices for palladium, which carmakers use in catalytic converters to reduce emissions, jumped to the highest level since last July.
With Western countries tightening sanctions on Russia, which accounts for 40% of global palladium production, analysts have warned of further supply restrictions for the metal in an already tight market.