Gold trades near the threshold of US $ 1,800 due to the fall of the dollar

The gold stabilizing around the all-important $1,800 level on Wednesday as a pullback in the dollar and US Treasury yields led to a jump in investors’ appetite for riskier assets.

Spot gold was up 0.1% at $1,802.72 an ounce by 10:37 GMT. US gold futures were up 0.1% at $1,802.90 an ounce.

“Gold is very much an asset influenced by the ranges it can move in right nowsaid Michael Hewson, chief market analyst at CMC Markets UK.

Hewson added that the metal was also unlikely to find a clear direction in the short term as record inflation in the euro zone put pressure on the European Central Bank’s (ECB) position that it will not raise interest rates this year.

Gold is considered a hedge against inflation, but upward monetary policy adjustments increase the opportunity cost of holding the metal as an investment, since it does not earn interest.

Expected interest rate hikes this year, starting with the Bank of England’s on Thursday, are also likely to temper safe-haven searches triggered by the Russia-Ukraine crisis, said Carlo Alberto De Casa, a market analyst at Kinesis.

Among other precious metals, silver added 0.7% to $22.79 an ounce; while platinum advanced 0.8% to US$1,035.62 an ounce; and palladium rose 0.6% to $2,378.24 an ounce.

With information from Reuters.