Gold slips as investors take a breath after news of upcoming Russia-US meeting
On Thursday, gold rose as much as 1.8%, breaking past $1,900/oz for the first time since June 11
18 February 2022 - 08:14
byBharat Gautam
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Bengaluru — Gold prices retreated on Friday, after breaking above the key $1,900 level for a second consecutive session, as a Russia-US meeting next week slowed investors’ dash to the safety of bullion.
Spot gold fell 0.3% to $1,890.77/oz, as of 3.08am GMT, after touching its highest in eight months at $1,902.22/oz earlier in the session. US gold futures dropped 0.5% to $1,892.70/oz.
US stock futures bounced on Friday and selling pressure eased in Asian share markets after the US secretary of state agreed to a meeting with Russia’s foreign minister, raising hopes for a diplomatic solution to the East-West standoff over Ukraine.
One of the deepest crises in post-Cold War relations is playing out in Europe as Russia wants security guarantees, including Kyiv never joining Nato, and the US and allies offer arms control and confidence-building measures.
“We are seeing gold in extension of that invasion trade, said IG Markets analyst Kyle Rodda and “the next technical level to watch is around $1,920, so there's certainly technical basis to see gold prices rise.”
On Thursday, gold rose as much as 1.8%, breaking past $1,900/oz for the first time since June 11, with analysts expecting a further rally if tensions continue to escalate, and vice versa.
US 10-year Treasury yields firmed, increasing the opportunity cost of holding non-interest-paying bullion. Spot gold, however, is set for a third straight weekly gain, up about 1.7% so far.
“In the short term, bullion market inflows have clearly been buttressed by Russia-Ukraine geopolitics, higher equity market vols, and inflation hedge demand,” analysts at Citi said in a note.
Spot silver was little changed at $23.80/oz and palladium dipped 0.7% to $2,349.52/oz, with both set for small weekly gains. Platinum gained 0.3% to $1,091.95/oz, setting up its best weekly showing since June.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Gold slips as investors take a breath after news of upcoming Russia-US meeting
On Thursday, gold rose as much as 1.8%, breaking past $1,900/oz for the first time since June 11
Bengaluru — Gold prices retreated on Friday, after breaking above the key $1,900 level for a second consecutive session, as a Russia-US meeting next week slowed investors’ dash to the safety of bullion.
Spot gold fell 0.3% to $1,890.77/oz, as of 3.08am GMT, after touching its highest in eight months at $1,902.22/oz earlier in the session. US gold futures dropped 0.5% to $1,892.70/oz.
US stock futures bounced on Friday and selling pressure eased in Asian share markets after the US secretary of state agreed to a meeting with Russia’s foreign minister, raising hopes for a diplomatic solution to the East-West standoff over Ukraine.
One of the deepest crises in post-Cold War relations is playing out in Europe as Russia wants security guarantees, including Kyiv never joining Nato, and the US and allies offer arms control and confidence-building measures.
“We are seeing gold in extension of that invasion trade, said IG Markets analyst Kyle Rodda and “the next technical level to watch is around $1,920, so there's certainly technical basis to see gold prices rise.”
On Thursday, gold rose as much as 1.8%, breaking past $1,900/oz for the first time since June 11, with analysts expecting a further rally if tensions continue to escalate, and vice versa.
US 10-year Treasury yields firmed, increasing the opportunity cost of holding non-interest-paying bullion. Spot gold, however, is set for a third straight weekly gain, up about 1.7% so far.
“In the short term, bullion market inflows have clearly been buttressed by Russia-Ukraine geopolitics, higher equity market vols, and inflation hedge demand,” analysts at Citi said in a note.
Spot silver was little changed at $23.80/oz and palladium dipped 0.7% to $2,349.52/oz, with both set for small weekly gains. Platinum gained 0.3% to $1,091.95/oz, setting up its best weekly showing since June.
Reuters
WATCH: South Deep a standout performer in Gold Fields results
Pan African Resources achieves record output despite weaker gold price
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.