Gold steady as Ukraine tensions counter Fed rate-hike bets
Gold was steady on Wednesday above the $1,800 psychological level as concerns surrounding Ukraine supported the safe-haven metal, while investors awaited U.S. jobs data that is considered key for the Federal Reserve’s tapering timeline.
Spot gold held its ground at $1,801.25 per ounce, as of 0102 GMT. In the previous session, bullion touched $1,805.43 as investment demand strengthened, with a weak U.S. dollar and Treasury yields offering further support.
U.S. gold futures were flat at $1,801.10.
Reflecting investor appetite, holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, rose to the highest level since mid-August on Tuesday.
Ukraine announced plans to boost armed forces as European leaders lined up to back the country in a standoff with Russia.
Philadelphia Fed President Patrick Harker was cautious on Tuesday as he pushed back on a rate hike of half a percentage point in March, saying he would have to be convinced it was needed.
Although gold is considered a hedge against inflation and geopolitical risks, interest rate hikes would raise the opportunity cost of holding non-yielding bullion.
Investors are looking forward to the U.S. non-farm payroll data due later this week.
A measure of U.S. manufacturing activity fell to a 14-month low in January amid an outbreak of COVID-19 cases, supporting the view that economic growth lost steam at the start of the year.
Spot silver was up 0.1% at $22.66 an ounce and platinum rose 0.2% to $1,028.65, while palladium shed 0.1% to $2,360.65.
