JAKARTA, THE NUSANTARA POST- Gold rose in late trading Monday (Tuesday morning WIB), as investors looked for safe havens amid prospects Western countries will impose more sanctions on Russia over its invasion of Ukraine and possibly higher inflation, despite rising dollar and bond yields. the US government limits profits.
The most active gold contract for June delivery on the Comex division of the New York Exchange, rose 10.3 dollars, or 0.54 percent, to close at 1934.00 dollars an ounce. Gold futures fell 30.3 dollars, or 1.55 percent, to 1,923.70 dollars on Friday (1/4/2022) and shed 1.8 percent for the last week.
There’s a chance that inflation will be higher due to a slowdown in shipments related to the pandemic in China as well as the war in Ukraine, which bodes well for gold, said Daniel Pavilonis, senior market strategist at RJO Futures.
Investors also looked forward to the release of the minutes from the Federal Reserve’s last policy meeting on Wednesday (6/4/2022) for signs that the US central bank may raise its benchmark interest rate by half a percentage point next month.
The safe-haven dollar rose to one-week peaks, also supported by rising US government bond yields on expectations that US interest rates will rise sharply. The movement of the dollar held back gold’s rise.
Gold is highly sensitive to rising US interest rates, which increases the chances of a loss holding non-yielding gold while boosting the dollar.
Global anger spread on Monday (4/4/2022) over the killing of civilians in northern Ukraine and is likely to galvanize the West to impose additional sanctions on Moscow, which could possibly cover Russian energy exports.
“Safe-haven demand may diminish if peace talks between Russia and Ukraine are successful, but inflation is likely to remain high, which could continue to support gold prices,” analysts at Heraeus Precious Metals wrote in a note.
Monday’s gains on Wall Street also dimmed gold’s appeal, as the Nasdaq and S&P 500 indexes were boosted by megacaps and a 20 percent jump in Twitter.
Traders also digested comments by Ukrainian President Volodymyr Zelensky that peace negotiations had become more difficult as the Ukrainian military reported civilian deaths in the Ukrainian city of Bucha.
Meanwhile, the US Commerce Department reported on Monday (4/4/2022) that US factory orders fell 0.5 percent in February after surging with an upwardly revised 1.5 percent in January. The drop in factory orders came for the first time in 10 months.
For other precious metals, silver for May delivery fell 6.4 cents, or 0.26 percent, to close at 24.59 dollars an ounce. Platinum for July delivery rose 2.4 dollars, or 0.24 percent, to close at 991 dollars an ounce (Ant/TNP)