Gold prices rose in trading on Monday, with anticipation of the situation in Eastern Europe, amid expectations of imposing more sanctions on Russia, which supported the precious metal, which is considered a safe haven against geopolitical tensions.
Gold prices started their trading on a decline, today, Monday, with the stability of dollar and treasury returns after the release of a strong US jobs report that raised expectations of raising interest rates.
A strong dollar usually makes gold less attractive to other currency holders, while higher returns increase the opportunity cost of holding unpaid bullion.
Gold Prices Today
The price of gold futures contracts – for delivery in June – rose by 0.57%; equivalent to $10.90, to reach the level of $1934.60 an ounce.
Gold prices ended their trading last week, down by about 30 dollars, with the rise of the US dollar; The metal recorded weekly losses of more than 1.6%.
The spot price for the yellow metal also rose by 0.30%, to reach $1,930.32 an ounce.
At the same time, the price of silver futures contracts – May delivery – rose by 0.22%, at $ 24.66 an ounce.
Spot platinum rose 0.46% at $990.58 an ounce, and spot palladium rose 2.48%, at $2,326.99 an ounce.
Russian-Ukrainian War
“The conflict in Eastern Europe is providing a modest tailwind to gold prices on dips; it is very clear that key pricing inputs for gold have been impacted by higher US yields and a stronger dollar,” said Principal Analyst Jeffrey Haley.
The dollar had a strong start to the week, while Treasury yields were also higher; The US monthly jobs report indicated a strong labor market, and the Federal Reserve is likely to remain on the right track to maintain its hawkish stance on policy.
US jobs data showed the unemployment rate fell to a new two-year low of 3.6% and wages re-accelerated; This caused the Federal Reserve to raise interest rates by 50 basis points in May.
Interest Rates
Investors are looking forward to any discussion of a 50bp rate hike when the Federal Reserve releases the minutes of its March meeting next Wednesday.
Meanwhile, Germany’s defense minister said on Sunday that the European Union should discuss banning Russian gas imports, after Ukrainian and European officials accused Russian forces of atrocities.
The spot price of gold is expected to decrease to 1898 USD; It broke the support at $1,924 an ounce, according to Reuters technical analyst Wang Tao.
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 out of fear of stigma and retaliation on social media,” he added.
Source: XglobalMarkets
