Gold prices firm as safe-haven demand remains strong

On Thursday, gold held an advance as safe-haven demand remained strong ahead of potential new sanctions against Russia.

Accordingly, futures tied to the yellow metal strengthened 0.20% or 3.95 points to $1,941.40 per troy ounce. It extended its gain of 0.82% to $1,937.30 yesterday.

Meanwhile, spot gold slightly declined 0.14% or 2.93 points to $1,941.39 per troy ounce. On Wednesday, it hiked 1.14% to $1,943.42.

Investors looked forward to deeper deterrents against Moscow amid the latest meetings of US President Joe Biden and his allies.

Moreover, the United States and European Union are near to closing a deal. The agreement aimed to slash Europe’s dependence on the Kremlin energy resources.

Then, Russian President Vladimir Putin warned that he could switch certain gas sales to roubles.

This remark contributed to high prices and volatility in the oil market. It also triggered concerns of an exacerbated energy crunch across the globe.

Today, the ongoing war marked its first month, displacing 10.00 million people in Ukraine. In addition, the conflict has pushed up commodity prices and inflation.

At the same time, it resulted in faster monetary tightening from major central banks.

For instance, the US Federal Reserve, which recently unveiled a rate hike, gave a more hawkish tone.

The American central bank said it would act to curb inflation. It further stated that a 50 basis-point increase in interest rates is on the table for their meeting in May.

This sent US Treasury yields higher, weighing on non-interest-bearing bullion. Subsequently, the ten-year bonds rose 0.025 points to a 2.35% level, the highest since 2019 this week.

Nevertheless, gold also benefited from its appeal as a hedge against consumer-price gains.

Platinum declines as Gold Rises

Unlike gold, platinum started the day with negative momentum. The precious metal currently skids 0.50% or 5.15 points to $1,019.85 per troy ounce after trading flat last session.
Meanwhile, palladium, a material used by automakers, increased 0.54% or 13.52 points to $2,536.02 per troy ounce. It edged up 0.80% to $2,534.00 yesterday.
Then, silver elevated 0.36% or 0.09 points to $25.27 per troy ounce. The white metal followed Wednesday’s jump of 1.14% to $25.19.
Moreover, SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 1.37% or 2.45 points to $181.81. It was the most significant figure since February last year.