Gold rose more than 1% on Wednesday, as a slight decline in the dollar revived its safe-haven appeal somewhat, although the prospect of a sharp interest rate hike kept the non-yielding metal near two-and-a-half year lows.
By 1458 GMT, gold in spot transactions rose 1.3 percent to $ 1650.49 an ounce, up 1.5 percent in US transactions, to compensate for some losses following falling to its lowest level since April 2020 earlier in the session. US gold futures rose 1.4 percent to $1,658.90.
David Meijer, director of metals trading at High Ridge Futures, said the decline in the dollar and yields “caused gold to move away from those lows.” “Factors related to Russia and the referendum to annex parts of Ukraine … may have supported the (gold) market as a safe haven,” Major added.
The dollar fell following hitting a new high in two decades, making bullion less expensive for buyers abroad, while US Treasury yields fell.
However, gold has not been able to benefit from the recent stock crash, as higher interest rates have increased the opportunity cost of holding the non-returning precious metal.
As for other precious metals, silver rose 1.3 percent to $18.66 an ounce, following falling to a three-week low of $17.94 earlier in the session. Platinum also rose 0.5% to $852.30, and palladium rose 1.3 percent to $2112.91. (Archyde.com)
