Gold prices rose during trading on Monday, supported by the uncertainty about the Russian-Ukrainian war, in addition to the closures in China to control the Corona virus.
The US Treasury bond yields and the high dollar deprived the yellow metal of achieving gains, after it had started today’s trading with a decline.
Gold Prices Today
The price of gold futures contracts – for June delivery – increased by 0.36%, to reach the level of $ 1952.70 an ounce.
On Friday, gold prices ended higher, recording weekly gains of more than 1.1%.
The price of spot delivery of the yellow metal also increased by 0.57%, to reach $ 1956.82 an ounce.
At the same time, the price of silver futures contracts – May delivery – rose by 1.35%, at $25.03 an ounce.
The spot platinum price increased by 1.28% at $987.05 an ounce, and the spot palladium price jumped 4.27% at $2511.70 an ounce.
“Gold continues to trade sideways, and this reflects the mixed currents we are looking at,” said Michael McCarthy, chief strategist at Tiger Brokers.
“There remain real concerns about the geopolitical outlook and potential for escalation in Ukraine,” he added.
At the same time, he noted, the rise in the US dollar and the prospect of higher interest rates around the world have dampened enthusiasm for gold.
TheDollar And US Bonds
The dollar index, which measures the greenback against a basket of several currencies, rose on the back of 10-year US Treasury yields that reached their highest level in more than 3 years and prospects that the US Federal Reserve will raise interest rates aggressively; to contain rising inflation.
A stronger dollar makes gold less attractive to other currency holders, while higher US interest rates and yields increase the opportunity cost of holding bullion, which is also used as a hedge against inflationary pressures.
Today, Monday, the Ukrainian armed forces prepared to launch a new Russian attack; Where powerful explosions rocked cities in the south and east; This gave some support to the safe-haven metal.
On the other hand, UBS analysts said, in a note: “The rise in palladium prices is likely to accelerate the transition from palladium to platinum for use in catalytic converters.”
The auto-catalyst metal rose 8.6% on Friday, after trading of newly refined Russian platinum and palladium was suspended in London, the metal’s largest trading center.