Gold flat as weaker yields, Ukraine worries counter firmer dollar
- Date: 13-Apr-2022
- Source: Zawya
- Sector:Financial Markets
- Country:Middle East
Gold flat as weaker yields, Ukraine worries counter firmer dollar
Gold prices were flat on Wednesday, after gaining as much as 1% in the last session, as Treasury yields eased after U.S. inflation data and concerns over Ukraine conflict supported safe-haven bids, while a firm dollar capped bullion's gains.
FUNDAMENTALS
* Spot gold was little changed at $1,964.70 per ounce by 0136 GMT, after hitting a near one-month peak of $1,978.21 on Tuesday. U.S. gold futures were down 0.4% at $1,968.80.
* U.S. Treasury yields moved lower on Tuesday, with the benchmark 10-year Treasury yield on track for its first decline in eight sessions after a reading on inflation showed an acceleration in March, but sparked hope higher prices may have peaked.
* U.S. monthly consumer prices increased by the most in 16-1/2 years in March as Russia's war against Ukraine boosted the cost of gasoline to record highs, cementing the case for a 50 basis point interest rate hike from the Federal Reserve next month.
* While gold is considered a hedge against inflation, higher U.S. interest rates and yields increase the opportunity cost of holding bullion.
* Ukraine told Russia to release prisoners of war if it wants the Kremlin's most high-profile ally in the country freed, as the United States is expected to