© Reuters. FILE PHOTO: Marked ingots of 99.99 percent pure gold are placed in a cart at the Krastsvetmet non-ferrous metals plant in the Siberian city of Krasnoyarsk, Russia March 10, 2022. REUTERS/Alexander Manzyuk/
By Seher and Dareen
(Reuters) – Gold prices rose on Thursday as concerns over rising costs and the Ukraine crisis bolstered its appeal as an inflation hedge and a safe haven, but the U.S. Federal Reserve’s aggressive policy stance limited gains.
XAU= was up 0.5% to $1,934.69 per ounce by 2:13 p.m. ET (1812 GMT). U.S. rose 0.8% to $1,937.80.
“Once inflation starts to heat up again, which I think it will, it is going to work in favor (of gold), even in the face of the aggressive Fed monetary policy,” said Jim Wycoff, senior analyst at Kitco Metals.
Minutes of the Fed’s March meeting showed deepening concern among policymakers that inflation had broadened through the economy, with “many” participants prepared to raise interest rates in hefty 50-basis-point increments in the next few meetings. (Full Story) (Full Story)
Rising U.S. interest rates increase the opportunity cost of holding bullion while boosting the dollar.
The =USD slipped from a near two-year high touched earlier in the session, while benchmark also held close to a multi-year peak scaled on Wednesday. US/ USD/
Ukraine has stepped up calls for financial sanctions crippling enough to force Moscow to end the war, while NATO members have agreed to strengthen support to Kyiv. (Full Story) (Full Story)
Wall Street’s main indexes fell for a third straight session, as growth stocks extended losses on concerns over a more hawkish Federal Reserve and the war in Ukraine. .N
Palladium rose as much as 3.7% to around $2,278.
“Palladium has been very volatile. For today, it’s just recovering a little bit from yesterday’s losses,” said Miguel Perez-Santalla, head of trading sales and marketing at Heraeus Metals Management in New York. (Full Story)
Russia produces 25%-30% of the world’s supply of palladium, a metal used by automakers in engine exhausts to reduce emissions.
In other metals, silver rose 0.6% to $24.58 per ounce and platinum gained 0.9% to $961.53.