Andrew
Gold was steady after posting the biggest quarterly advance in almost two years as Russia’s war in Ukraine, concerns over inflation and the risks to global growth burnished its appeal as a haven asset.
The new quarter began with talks between the two countries was set to resume on Friday, and the release of the monthly US jobs report.
Bullion was still headed for a weekly loss, with traders continuing to assess the prospects of a quicker pace of interest rate hikes in major economies.
Central banks are tackling price pressures fuelled by a conflict that’s disrupted commodity flows.
US inflation-adjusted consumer spending declined in February, suggesting the fastest pace of price increases in four decades is starting to temper demand.
The personal consumption expenditures price index, which the Federal Reserve uses for its inflation target, increased 6,4 percent from a year earlier, the most since 1982.
The elevated inflation and geopolitical risks have seen the biggest monthly inflows into gold-backed exchange-traded funds since 2016 as investors seek a store of value.
Still, some headwinds remain as Wall Street’s biggest banks are betting on the Fed turning much more aggressive in tightening monetary policy than they predicted just weeks ago.
Higher rates typically weigh on the non-interest bearing precious metal.
“A strong US nonfarm payrolls print could lift bond yields and the greenback once again, and resume the downward pressure on gold,” said Jeffrey Halley, a senior market analyst at Oanda Corp.
“Gold could well test below US$1 880, possibly as low as US$1 800 in the week ahead.”
Spot gold gained 0,1 percent to US$1 939.21 an ounce at 12.17 pm in Singapore, after rising 5,9 percent in the first quarter, the most since the three months ended June 30, 2020.
The Bloomberg Dollar Spot Index added 0,1 percent after climbing 0,3 percent in the previous session. Palladium, platinum and silver all advanced. − Bloomberg.
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