Business

Gold rises as G7 nations move to ban bullion imports from Russia

Article content

Gold prices firmed on Monday, as some

Western nations’ plans to ban imports of the metal from Russia

for its invasion of Ukraine, signaled potentially tighter

supplies of bullion.

FUNDAMENTALS

* Spot gold was up 0.2% at $1,828.99 per ounce by

0102 GMT. U.S. gold futures were flat at $1,830.90.

* Four of the Group of Seven (G7) rich nations moved to ban

imports of Russian gold on Sunday to tighten the sanctions

squeeze on Moscow and cut off its means of financing the

invasion of Ukraine.

Advertisement 2

Article content

* But it was not clear whether there was G7 consensus on the

plan, with European Council President Charles Michel saying the

issue would need to be handled carefully and discussed

further.

* Elsewhere, a pair of U.S. central bankers said on Friday

they supported further sharp interest rate hikes to stem rapid

price rises, even as investors cheered economic data showing

inflation expectations to be less worrisome than initially

feared.

* Gold is seen as a hedge against inflation, but higher

interest rates raise the opportunity cost of holding bullion,

which yields no interest.

* The International Monetary Fund slashed its U.S. economic

growth forecast on Friday, as aggressive Federal Reserve

interest rate hikes cool demand but predicted that the United

Advertisement 3

Article content

States would “narrowly” avoid a recession.

* Gold prices fell last week as looming interest rate hikes

weighed, despite seeing some gains on Friday as the dollar

retreated and recession fears buoyed its safe-haven appeal.

* SPDR Gold Trust , the world’s largest gold-backed

exchange-traded fund, said its holdings fell 0.2% to 1,061.04

tonnes on Friday from 1,063.07 tonnes a day earlier.

* Spot silver rose 0.2% to $21.15 per ounce, platinum

gained 0.2% to $908.99, and palladium was up 0.2%

to $1,880.69.

DATA/EVENTS (GMT)

1230 US Durable Goods May

(Reporting by Bharat Govind Gautam in Bengaluru; Editing by

Rashmi Aich)

Advertisement

Comments

Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.


Source link

Tags
Show More

Related Articles

Back to top button
Close