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File image of a Deutsche Bundesbank employee analyzing a gold bar during a press conference in Frankfurt, Germany.
Por Swati Verma
Jan 19 (Archyde.com) – Gold rose more than 1% on Wednesday as a retreating dollar and geopolitical tensions over Ukraine increased bullion’s safe-haven appeal, sparking a rally in precious metals.
* Palladium led gains, rising 7%, and Citi Research said in a note that a gradual recovery in global auto production could support demand for the metal for auto catalysts this year.
* By 1600 GMT, spot gold was up 1.4% at $1,838 per ounce, while US gold futures were up 1.4% at $1,837.40.
* Kyle Rodda, an analyst at IG Markets, said ongoing geopolitical considerations, including concerns around Ukraine and Russia, could be a push to buy gold for some, but “in the big picture, that issue is minor in comparison.” with Fed policy.
* US Secretary of State Antony Blinken said on Wednesday that Russia could launch a new attack on Ukraine in “a very short time” but that Washington will continue diplomacy while it can, despite not being sure what Moscow really want.
* The dollar’s slide made bullion cheaper for investors with other currencies, while the retreat of 10-year US Treasury yields from a two-year high also boosted demand for the metal.
* Rising rates tend to reduce the attractiveness of bullion, which does not bear interest.
* In other precious metals, spot silver rose 2.3% to $23.98 an ounce and platinum rose 4.8% to $1,028.
(Reporting by Swati Verma and Seher Dareen in Bengaluru; edited in Spanish by Carlos Serrano and Javier Leira)