Gold prices in the global market on Tuesday, driven by demand for safe haven, due to continued tensions in Ukraine and Russia, maintained an increase of about one percent yesterday and remained stable.
The price of an ounce of gold for immediate delivery rose 0.1 percent to $ 1,821.61 an ounce. The trading price of this market had reached its highest level in more than a week yesterday.
In the US futures market, an ounce of gold was stable and stood at 1822 dollars and 50 cents. The stock traded up 0.8 percent at $ 1,821.80 on Monday.
According to Daily Forex strategist Margaret Young, geopolitical tensions over Russia and Ukraine have pushed up gold prices. In addition, investors are waiting for US inflation data. January inflation is expected to be higher than December. According to a Reuters poll, the US consumer price index rose 7.3 percent year on year in January, the largest increase since 1982 and could intensify pressure on the Federal Reserve to accelerate monetary policy consolidation.
Although gold is a safe haven for inflation, rising rates reduce the cost of maintaining the metal, which is a non-performing asset. Continued concerns about a possible Russian invasion of Ukraine have also supported the demand for gold as a safe haven.
“Overall, the price of gold seems to be weak, and the uptrend in the precious metal seems weak, given that the market is counting on five or six rounds of interest rates by the US Federal Reserve this year,” Yang said.
The factor that limited the growth of the gold price was the rise of 10-year US Treasury yields to the highest level in more than two years.
According to Reuters, US President Joe Biden announced on Monday that if Russia invades Ukraine, the Stream 2 rolling gas pipeline will be stopped, while British Prime Minister Boris Johnson said: “Sanctions and other measures will be ready.” . “The strong demand for safe-haven assets such as gold amid geopolitical tensions has helped to offset some of the impact of concerns about the US Federal Reserve’s tightening monetary policy on gold prices,” ANZ analysts wrote in a note.
In other precious metals, silver for immediate delivery fell 0.3 percent to $ 22.93 an ounce. Platinum for immediate delivery fell 0.3 percent to $ 1,016.49 an ounce. The price of an ounce of palladium for immediate delivery increased by 0.2 percent to $ 2267 and 35 cents.