Friday and Palladium put a brake on the fierce rally as higher-risk assets attempted to revive. Analysts predicted that precious metals would rise further if the Ukrainian crisis escalated further.
Spot gold fell 1.9% to $ 2,013.79 per ounce at 1047 GMT, recording a four-session rally that reached record highs in August 2020. US gold futures fell 1.1% to $ 2,021.20.
Craig Erlam, Senior Market Analyst at OANDA, said:
Major stock indexes rebounded as investors picked up the beaten stock following a recent defeat triggered by concerns over the growing western sanctions against Russia against the invasion of Ukraine.
Crude oil prices, which have raised inflation concerns and made gold attractive as a hedge against rising costs, have also receded.
Michael McCarthy, chief strategy officer of Australia’s Tiger Brokers, said strong resistance to gold prices is expected near these high levels and could be pulled back to close to $ 1,930, from $ 1,930 to $ 2,075. Some degree of integration is expected between them.
“But if the current geopolitical instability continues, it’s very likely that precious metals will hit record highs,” McCarthy added.
Palladium used by catalytic converter car makers to reduce emissions hit a record high of $ 3,440.76 on Monday and then fell 3.7% to $ 3,063.19 per ounce.
According to Natixis analyst Bernard Durder, recent precious metal volatility can be considered normal because commodities do not keep up with fundamentals and industrial demand.
After hitting a high of nearly nine months on Tuesday, spot silver fell 1% to $ 26.13 per ounce. Platinum fell 3.5% to $ 1,113.43.
Bharat Gautam
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