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Title: Gold Down but Set for Weekly Gain Over Ukraine War, Inflation Concerns

Title: Gold Down but Set for Weekly Gain Over Ukraine War, Inflation Concerns

Apr 14, 2022 01:16AM ET

By: AnalysisWatch

Gold prices were down in Asia on Thursday morning. However, the yellow metal was on track for a second straight weekly advance as the war in Ukraine and widening inflationary pressures buoyed the safe-haven metal.

At 1:10 AM ET, gold futures were down 0.52% at $1,974.45, gaining about 1.7% so far this week. Markets in the U.S., Australia, and Hong Kong will be closed on Friday due to a public holiday. The dollar, which usually moves inversely to gold, was lower on Thursday and off its May 2020 highs.

The benchmark 10-year Treasury bond yield fell Wednesday after rising steadily earlier in the month as investors bet the Federal Reserve would tighten monetary policy aggressively to curb high inflation.

In the Asia-Pacific region, the People's Bank of China (PBOC) is expected to cut its one-year benchmark interest rate on Friday, marking the second time in 2022 that it has taken such action. The PBOC is also expected to cut the reserve requirement ratio soon.

The Bank of Korea raised the rate to 1.5% in its latest decision. Investors are now waiting for the European Central Bank's monetary policy decision, which is expected later today.

Meanwhile, the war in Ukraine, which has been ongoing since the Russian invasion on February 24, continues. The U.S. said Wednesday that it would provide another $800 million in military aid to Ukraine ahead of a widely expected Russian attack on the country's east.

Holdings in the SPDR Gold Trust rose 1% to 1,104.42 tons on Wednesday. In other precious metals, silver rose 0.3%, platinum gained 0.2% and palladium rose 1.8%.

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