(Archyde.com)
Gold fell on Friday, as US Treasury yields increased overnight on the back of data that indicated a significant rise in inflation, but prices are heading for their second consecutive weekly gain following the lack of any progress in talks between Russia and Ukraine. 1984.91 dollars an ounce by 0615 GMT. And US gold futures fell 0.6 percent to $1989.20.
“Trading is once more very likely to be war-driven,” said Stephen Innes, managing partner at SBI Asset Management. But what will affect sentiment if there is no escalation on the war front is the Federal Open Market Committee, which will be a bit more hawkish than the markets currently think.”
Gold is highly sensitive to rising US interest rates, as it increases the opportunity cost of owning the non-yielding metal.
As for other precious metals, palladium rose 0.2 percent to $2,933.67 an ounce. The metal hit an unprecedented high of $3,440.76 on Monday, backed by fears of supply disruptions from Russia, its largest producer.
Silver fell in spot transactions 0.9 percent to $ 25.64 an ounce, while platinum fell 0.7 percent to $ 1061.23, and is heading to incur the largest weekly loss since November.
