 "gold")
Gold prices dipped in range-bound trading on Monday, as elevated Treasury yields boosted the dollar and countered support from uncertainty around the Ukraine war, while palladium rose after London's decision to block trading of the metal from Russia.
Spot gold was down 0.2% at $1,942.85 per ounce by 0730 GMT, after hitting a more than one-week high of $1,949.32 earlier in the day. U.S. gold futures were up 0.1% at $1,947.40.
"Gold is still trading sideways and that reflects the conflicting currents that we're looking at. There's still real concerns about the geopolitical outlook and the potential for escalation in Ukraine," said Michael McCarthy, chief strategy officer at Tiger Brokers, Australia.
"At the same time, a stronger U.S. dollar and potential for higher interest rates around the globe are keeping a lid on enthusiasm for gold."
The U.S. dollar index gained ground, bolstered by U.S. 10-year Treasury yields hitting a more than three-year high and prospects of aggressive rate hikes by the U.S. Federal Reserve to contain soaring inflation. [USD/] [US/]
Also Read
A stronger dollar makes gold less attractive for other currency holders, while higher U.S. interest rates and yields increase the opportunity cost of holding bullion, which is also used as a hedge against inflationary pressures.
Ukraine's armed forces braced on Monday for a new Russian offensive as powerful explosions rocked cities in the south and east, lending some support to the safe-haven metal.
Palladium gained 3% at 2,499.19 after hitting a more than two-week high earlier in the session.
"The surge in palladium prices is likely to accelerate the shift from palladium to platinum for use in catalytic converters," UBS analysts said in a note.
The auto-catalyst metal had gained 8.6% on Friday after newly refined Russian platinum and palladium were suspended from trading in London, the metals' biggest trade hub.
Spot silver was up 0.1% at $24.77 per ounce and platinum rose 0.7% to $981.88.
(Reporting by Asha Sistla in Bengaluru; Editing by Subhranshu Sahu and Sherry Jacob-Phillips)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
