Gold remains unchanged in Asia, while platinum and palladium climb

Bengaluru — Gold prices struggled for momentum on Friday as a stronger US dollar negated safe-haven demand triggered by a lack of progress in Russia-Ukraine peace talks, while investors awaited US jobs data that could provide cues on policy tightening.

Spot gold stood its ground at $1,937.55 per ounce on 04.25am GMT, but was on course to end the week more than 1% lower. US gold futures fell 0.5% to $1,944.20.

“Gold is unchanged in Asia, with no signs of weekend haven-buying, another ominous sign, especially as the US dollar continues to rally today,” said Oanda senior analyst Jeffrey Halley. “Gold remains trapped in a $1,920-$1,950 range, but its inability to rally as the US dollar and yields fell this week is a concern and risks are still skewed to the downside.”

The dollar index moved higher from a near one-month low hit earlier in the week, making gold more expensive for other currency holders.

Benchmark US 10-year Treasury yields pulled back from near three-year highs. Lower yields reduce the opportunity cost of holding non-yielding gold.

Investors were looking forward to the March US jobs data, due later in the day, for wage inflation and cues on the US Federal Reserve's monetary policy stance.

European buyers of Russian gas faced a deadline to start paying in roubles on Friday, while negotiations aimed at ending the five-week war were set to resume even as Ukraine braced for further attacks in the south and east.

Spot gold may test a support at $1,924 per ounce, with a good chance of breaking below this level and falling towards $1,898, according to Reuters technical analyst Wang Tao.

Spot silver edged 0.2% higher to $24.82 per ounce. Platinum rose 0.9% to $991.67, while palladium climbed 0.9% to $2,282.94. Both metals, however, were on course for a fourth consecutive weekly loss.

Reuters