Gold price rises underpinned by uncertainty over Ukraine and inflation

Gold prices rose on Wednesday as investors sought to hedge against soaring inflation and uncertainty caused by events in Ukraine, with a pullback in US bond yields also offering support for the precious metal.

Spot gold was up 0.42% at $1,930.68 an ounce by 1145 GMT. US gold futures were up 0.6% at $1,932.90 an ounce.

“The market appears to be holding up quite well since its sharp downward correction,” supported by ongoing geopolitical uncertainty and good physical demand, independent analyst Ross Norman said.

Gold prices advanced to near record highs earlier this month, but then fell gradually ahead of a monetary policy meeting of the United States Federal Reserve In the past week. Since then, they have moved into a more stable range.

“What’s phenomenal right now and a good indicator of the start of a gold bull market is that demand for ETFs (exchange-traded funds) remains remarkably strong,” as institutional investors now begin to focus on the matter. of inflation, Norman added.

The gold it is considered a safe store of value in times of rising inflation and geopolitical uncertainty.

Investors are now eagerly awaiting comments from Federal Reserve Chairman Jerome Powell at a Bank for International Settlements summit later in the day for more clarity on monetary policy tightening.

Among other precious metals, the plant rose 1.2% to $25.04 an ounce; while platinum remained stable at US$1,023.60 an ounce; and palladium rose 3% to $2,557.96 an ounce.