On Thursday, Gold prices slipped as risk sentiment in the global markets improved, despite escalating concerns on the Ukraine-Russia conflict.
Futures tied to the precious yellow metal edged down 0.12% or 2.40 points to $1983.50 per troy ounce.
At the same time, spot gold skidded 0.56% or 10.90 points to $1,980.37. It snapped a four-session rally that took the metal near a record high.
Likewise, US treasuries also posted losses on the comeback of risk appetite, with the 10-year yields down to 1.936%.
Despite the setback, the bullion trades 8.46% higher since the start of the year.
Then, holdings in gold-backed exchange-traded funds touched their highest since March 2021, with inflows of about 152 tonnes in 2022.
This significant upturn came as traders sought a hedge against the threat of an inflationary shock to the global economy.
Accordingly, the impact of the war in Ukraine and sanctions on Russia have resounded across the world. Concerns about the possible supply disruption drove commodity prices higher.
In addition, the latest move of the United States to ban Russian oil and other energy products has stoked further worries of stagflation.
Markets feared that the deterrent could halt countries’ economic recovery from the pandemic.
Ukrainian President Volodymyr Zelensky accused Moscow of carrying out genocide in the latest crisis development.
The claim came after the Russian aircraft bombed a children’s hospital on Wednesday, killing patients.
The attack is despite a ceasefire deal that could at least let trapped civilians escape the port city.
The war already entered the third week today, with none of its key objectives reached. Subsequently, there were thousands of people killed, with more than two million made refugees.
Furthermore, the conflict forced thousands of innocents to shiver in besieged cities under relentless bombardment.
Market Outlook for Gold remains Positive
Meanwhile, analysts explained that despite the recent pullback of gold, its long-term outlook still hovers on the positive territory.
They noted that the further instability in geopolitical terms could push fresh all-time highs for precious metals.
Eventually, palladium futures also decreased in the current trading session. It lost 0.73% or 21.50 points to $2,945.00 per troy ounce.
Nevertheless, the metal’s performance remained firm as it surged 54.01% year-to-date. This hike benefited from the fears of supply disruptions from top producer Russia.
Similarly, contracts of platinum slumped 3.97% or 45.80 points to $1,106.70 per troy ounce. Regardless, it still trades 14.66% higher this year.
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