Gold prices were flat on Wednesday as hawkish comments from U.S. Federal Reserve officials bolstered the dollar and Treasury yields to multi-year highs, denting bullion’s safe-haven demand and offsetting support from uncertainty around the Ukraine war. Spot gold was flat at $1,922.59 per ounce, as of 3:20 a.m. GMT, after declining 0.4 percent earlier in the session. U.S. gold futures were down 0.1 percent to $1,926.20. “Traders remain heavily net-long on gold futures markets, and that’s clearly helping to support prices overall,” said City Index senior market analyst Matt Simpson. “Yet, the stronger U.S. dollar and lack of safe-haven demand are capping its upside potential.” The dollar scaled its highest in nearly two years as Fed officials pushed for a quick reduction in the central bank’s bloated balance sheet, with one of them expressing openness to hefty rate increases of half a percentage point. [USD/] A stronger dollar makes gold …
Gold Prices Flat as Firmer Dollar, Yields Dim Safe-Haven Demand
April 6, 2022
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