Gold prices increased on Thursday, although the safe-haven metal is poised to post its biggest quarterly gain since September 2020.
The war between Russia and Ukraine – which erupted on February 24 last – led to a decline in the appetite for risk and raised the attractiveness of the precious metal.
Yesterday, Wednesday, gold prices ended their trading with a rise of about $21, to record the first rise in 4 consecutive sessions, with the decline of the US dollar.
Gold Prices Today
The price of spot delivery of the yellow metal increased by 0.26%, equivalent to $5.2, to reach the level of $ 1937.20 an ounce.
The yellow metal rose by about 5.5% so far in the first quarter of this year and 1% this month.
At the same time, the price of silver futures contracts – May delivery – increased by 0.59%, at $24.92 an ounce, but it is on its way to achieving the best quarterly rise since June 2021.
The spot platinum price also decreased by 1.76%, at $976.17 an ounce, although it is scheduled to achieve the largest quarterly gain since March 2021.
The spot price of palladium fell 0.02 % , at $2,262.42 an ounce, but it is on track to record its biggest quarterly jump since September 2020.
Gold Market Situation
“Gold traders are weighing the potential for further gains based on geopolitical risks and possibly inflation, and the risky outlook for gold holdings with higher interest rates, with the net result once again that we are back in the middle of the trading range,” said Michael McCarthy, Chief Strategy Officer at Tiger Brokers.
Ukrainian President Volodymyr Zelensky said on Thursday that Ukrainian forces were preparing for new Russian attacks in the east of the country, as Moscow reinforced its forces there after suffering setbacks near the capital, Kyiv.
Bullion is a safe store of value in times of political and financial uncertainty, and is viewed as a hedge against inflationary pressures. Higher interest rates increase the opportunity cost of holding unprofitable gold.
Platinum And Palladium
“You don’t think platinum and palladium will go down any time soon, and that’s not down to official sanctions, but companies are sanctioning themselves,” said Stephen Innes, managing partner at SBI Asset Management.
“They are afraid to start buying Russian goods for fear of stigma and retaliation on social media,” he added.
Source: XglobalMarkets
