On Friday, gold traded within a tight range as the dollar firmed on prospects of aggressive US Federal Reserve.
The latest trading session partially offset safe-haven metal’s demand amid the heightened Russia-Ukraine conflict.
Bullion contracts witnessed a dip of 0.23% or 4.40 points to $1,933.40 per troy ounce. It moved negatively from a slight upturn of 0.80% to 1,933.80 per troy ounce yesterday.
Then, the spot gold rose 0.13% or 2.52 points to $1,934.26 per troy ounce. It extended Thursday’s gain of 0.33% to $1,931.67 per troy ounce.
Consequently, the USD index, which usually moves inversely to the yellow metal, increased by 0.06% to 99.81. It jumped to a near two-year high and set for its best week in a month.
The American currency benefited from the recent hawkish remarks of Fed policymakers. They called for a faster pace of rate hikes to curb rapid inflation.
St. Louis Fed President James Bullard said that he prefers expanding the rate from 3.00% to 3.25%.
Nevertheless, Chicago Fed President Charles Evans explained that he favors stretching rates to neutral while continuing to monitor the economy.
Moreover, the benchmark US 10-year Treasury yield hit a three-year high during the previous session. It now trades 0.02 points higher to the 2.674% level.
Analysts also mentioned that easing pandemic restrictions on higher vaccination rates would put a cap on gold prices.
In the Asia-Pacific region, the Reserve Bank of India retained its interest rate steady at 4.00%.
Meanwhile, Ukraine has stepped up calls for financial sanctions crippling enough to force Russia to end the war.
Eventually, North Atlantic Treaty Organization (NATO) members agreed to strengthen support for Kyiv.
Gold, Silver prices drop
Like gold, silver futures edged down 0.05% or 0.01 points to $24.73 per troy ounce. It declined from a gain of 1.13% to $24.74 per troy ounce in the previous session.
Conversely, palladium contracts climbed 1.61% or 35.90 points to $2,259.00 per troy ounce. The continued Moscow invasion highly bolstered the precious metal’s movement.
In addition, it even followed a jump of 2.67% to $2,250.00 per troy ounce yesterday.
Likewise, platinum futures rose 0.38% or 3.60 points to $961.35 per troy ounce. It extended Thursday’s increase of 1.02% to $964.05 per troy ounce.