Mar 31, 2022 03:35AM ET
By: AnalysisWatch
Gold prices dropped in volatile trade on Thursday, even as the safe-haven metal moved towards its strongest quarterly gain since September 2020, as the Russia-Ukraine conflict dampened risk appetite and boosted gold's appeal.
At 03:14 AM ET, gold was 0.3% lower at $1,928.30 an ounce. US gold futures fell 0.4% to $1,931.20 an ounce.
The metal has gained 5.5% in the quarter to date and 1% in the current month.
Ukrainian forces are preparing for fresh Russian attacks in the east of the country as Moscow ramps up its troops there after suffering setbacks near the capital Kyiv, President Volodymyr Zelensky said on Thursday.
Gold bullion is considered a safe store of value in times of political and financial uncertainty and is seen as a hedge against inflationary pressures. However, rising interest rates increase the opportunity cost of holding gold, which does not yield a return.
Silverspot XAG fell 0.5% to $24.72 per ounce, but it was still on track for its best quarterly gain since June 2021. Platinum XPT lost 0.6% to $984.12, although it was on track to post its biggest quarterly gain since March 2021.
Palladium, the metal used in autocatalysts, fell 0.4% to $2,257.20 but was on track for its biggest quarterly gain since September 2020.
Don't think those (platinum, palladium) are going to be dropping anytime soon, and that goes back to not official sanctions, but companies self-sanctioning themselves. They're scared to start buying Russian commodities because of the retribution on social media," said Stephen Innes, managing partner at SPI Asset Management.
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