By Sherin Elizabeth Varghese
(Reuters) – Gold costs soared on Monday, after six days of losses, because the U.S. greenback’s surge stalled and heightened uncertainty over the Russia-Ukraine battle rekindled safe-haven demand.
Spot gold jumped 1.9% to $2,608.88 per ounce by 10:17 a.m. ET (1517 GMT), transferring away from a two-month low on Thursday. U.S. gold futures climbed 1.7% to $2,613.40.
“A part of it’s (President) Biden’s announcement of long-range missiles for Ukraine to succeed in deeper into Russian territory. I believe a few of it’s prompting safe-haven demand for gold,” stated Daniel Pavilonis, senior market strategist at RJO Futures.
Gold, which is taken into account a protected funding throughout financial and geopolitical turmoil, posted its steepest weekly drop in additional than three years final week as President-elect Trump’s proposed tariffs are seen as potential drivers of inflation, which may immediate the Fed to sluggish its rate-cutting tempo.
This in flip boosted the greenback index to commerce at a one-year excessive on Thursday. Nonetheless, the buck fell 0.2% on Monday after rising 1.6% final week. A softer greenback makes gold extra reasonably priced for consumers utilizing different currencies. [USD/]
“Whether or not the Federal Reserve cuts or not, I believe gold technically appears to be like prefer it desires to get again close to that $2,700 degree,” Pavilonis stated.
The U.S. central financial institution is broadly anticipated to ship a 3rd fee reduce in December, though current information confirmed progress in bringing inflation again to its 2% goal has stalled. A minimum of seven Fed officers are scheduled to talk this week.
Larger rates of interest, which make non-yielding property like gold much less interesting, may additional strain the metallic.
“Bulls’ subsequent upside (gold) value goal is to provide a detailed above strong resistance at $2,650,” stated Kinesis Cash.
Spot silver rose 3% to $31.13 per ounce, platinum added 2.2% at $959.37 and palladium climbed 4.4% to $992.34.
(Reporting by Sherin Elizabeth Varghese in Bengaluru; Modifying by Alexander Smith)
