Feb 4: Gold prices were steady on Friday, and set for a weekly gain as a weaker dollar, concerns over stubborn inflation and tensions surrounding Ukraine lifted demand for the safe-haven bullion.
FUNDAMENTALS
* Spot gold was at $1,806.86 per ounce, as of 0132 GMT. In the previous session, bullion touched $1804.4 as a weaker dollar and risk-off sentiment in the equity markets helped counteract pressure from a jump in U.S. Treasury yields.
* The metal has gained nearly 0.9% so far this week. U.S. gold futures edged 0.2% higher to $1,807.50.
* The dollar index was set for its biggest weekly drop since March 2020, lifting demand for the greenback-priced bullion among buyers holding other currencies.
* The Federal Reserve’s inflation fight should be its top priority, U.S. President Joe Biden’s Fed nominees told lawmakers on Thursday, signalling support for a hawkish pivot in monetary policy that’s already well underway.
* Russia has formulated several options as an excuse to invade Ukraine, including the potential use of a propaganda video showing a staged attack, the United States said.
* Gold is considered a hedge against inflation and geopolitical risks, but interest rate hikes would raise the opportunity cost of holding non-yielding bullion.
* The European Central Bank opened the door on Thursday to a 2022 interest rate hike in a policy turnaround, while the Bank of England raised rates to fight inflation.
* The International Monetary Fund said it was “too early” to say if the world was facing a period of sustained inflation.
* Among other metals, spot silver edged up 0.2% to $22.43 per ounce, platinum inched up 0.1% to $1,034.87 and palladium was steady at $2,325.70 per ounce.