Gold prices rose more than 9 dollars, during trading today, Monday, June 27, 2022; News of some Western countries’ plans to formally ban imports of the metal from Russia due to its invasion of Ukraine sparked interest in the precious metal.
Four of the wealthy Group of Seven nations moved to ban Russian gold imports on Sunday, to increase pressure on Moscow and cut off funding for the invasion of Ukraine.
Gold Prices Today
The price of gold futures contracts – August delivery – increased by 0.57%, equivalent to $ 9.70, to reach the level of $ 1836 an ounce.
On Friday, gold prices ended up trading, but recorded weekly losses of 0.6%.
The price of spot delivery of the yellow metal also increased by 0.66%, to reach $ 1838.91 an ounce, according to data seen by the specialized energy platform.
The price of silver futures contracts – for July delivery – also rose by 1.74%, at $21.47 an ounce.
The spot platinum price also rose about 0.22% to record $909.53 an ounce, and the spot palladium price rose 2.68%, at $1,908.26 an ounce.
Russian Gold Ban
“It appears that the G7 ban on importing Russian gold may provide some short-term support to trading in Asia,” said analyst Jeffrey Haley.
“I don’t expect this to represent a structural change in the supply and demand outlook that will support prices,” said Stephen Innes, managing partner at SBI Asset Management.
Two US central bank governors said on Friday that they support more sharp interest rate increases to stem the rapid rise in rates.
This comes as investors welcome economic data showing that inflation expectations are less worrisome than initially feared.
Gold is seen as a hedge against inflation, but higher interest rates raise the opportunity cost of holding the yellow metal; What does not result in any benefit.
“Overall, gold is still mired in the mid-$1,780-1880 range that has been in place since early May, and we would need a significant directional move by the USD to change this dynamic,” Halley said.