Gold recorded a decline in limited trading today, Thursday, but the metal, which is a safe haven, is heading for its largest quarterly gain since September 2020, as the Russian-Ukrainian conflict increased its attractiveness.
Spot gold fell 0.6% to $1,921.55 an ounce.
US gold futures fell 0.7% to $1,925.
The yellow metal advanced about 5% since the beginning of the current quarter, and 0.7% since the beginning of the month.
“Gold traders are weighing the possibility of further gains based on geopolitical risks, possibly inflation and risky expectations for gold holdings with higher interest rates, and the result has been Once again, we are back in the middle of the trading range."
Gold is a safe store of value in times of political and financial uncertainty, and is seen as a hedge against rising inflation.
However, higher interest rates increase the opportunity cost of owning the non-returning metal.
Spot silver fell 1% to $24.59 an ounce, but it is on its way to achieving its best quarterly rise since June 2021.
Platinum fell 0.8% to $982.22, but it is heading for the largest quarterly gain since March 2021.
Palladium fell 0.3% to $2,259.76, but is on track to post its biggest quarterly jump since September 2020.
The Source
- reuters.com