Gold poised for biggest quarterly gain in almost 2 years

WION Web Team
New DelhiUpdated: Apr 01, 2022, 12:08 AM IST
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File photo. Photograph:(Reuters)

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Gold is considered a safe investment during times of political and financial uncertainty

Gold was headed for biggest quarterly gain since pandemic-led surge in mid-2020. Gold's safe-haven appeal is also understood to have been bolstered by Ukraine crisis.

Spot gold XAU= was up 0.4% at $1,940.95 per ounce by 12:22 p.m. EDT (1622 GMT). For the month, bullion was up about 1.7%.

US gold futures GCv1 rose 0.4% to $1,946.90.

"The geopolitical situation has been dragging for a month now and inflation data continues to rise. So the overall sentiment in this market right now is people looking for safety," RJO Futures senior market strategist Bob Haberkorn said.

Gold is considered a safe investment during times of political and financial uncertainty.

Data showed U.S. consumer spending slowed significantly in February, while price pressures continued to mount, with the largest annual spike in inflation since the early 1980s. (Full Story)

Russia's invasion, which began on Feb. 24, has fuelled a rally in oil prices and industrial metals.

"We could see a pullback in gold if there is some positive news that comes out of the Russia-Ukraine conflict, but I think traders will look at that as a buying opportunity because of inflation fears," Haberkorn said.

The Federal Reserve has hinted toward aggressive rate hikes this year to fight against soaring inflation, which investors fear could send the U.S. economy into a recession.

A pullback in benchmark U.S. 10-year Treasury yields on Thursday also supported gold. US/

Silver XAG= inched 0.1% higher to $24.86 per ounce. Platinum XPT= fell 0.7% to $983.50. Both metals were set for quarterly gains.

Palladium XPD= rose 0.2% to $2,269.97 and was headed for its biggest quarterly jump since March 2020.