FILE PHOTO: Marked ingots of 99.99 percent pure gold are placed in a cart at the Krastsvetmet non-ferrous metals plant in the Siberian city of Krasnoyarsk, Russia March 10, 2022. REUTERS/Alexander Manzyuk/

March 25, 2022

By Bharat Gautam

(Reuters) – Gold prices were little changed on Friday, as firmer U.S. Treasury yields offset non-yielding bullion’s demand, but the metal was cautiously on course for its best week in three.

Spot gold XAU= was flat at $1,956.87 per ounce at 1012 GMT, holding near its highest since March 14 hit on Thursday. U.S. gold futures GCv1 shed 0.3% to $1,956.60.

Risks around Russia and Ukraine and talks about inflationary pressures have supported gold, StoneX analyst Rhona O’Connell said.

Gold, seen as a safe store of value during times of political crisis and uncertainty, has risen about 1.9% so far this week. Some investors also perceive it as a cushion against high inflation. GOL/ETF

The U.S. Federal Reserve raised borrowing costs for the first time in three years last week as it sought to combat soaring prices. Its top policymakers have since signalled a more aggressive approach to monetary policy tightening this year.

Yields on the U.S. 10-year Treasury note US10YT=RR firmed near recent highs, increasing the opportunity cost of holding zero-yield bullion. US/

Spot silver XAG= gained 0.5% to $25.63 per ounce and was set for a weekly rise of about 2.8%. Platinum XPT= fell 0.1% to $1,019.46, and palladium XPD= dipped 0.7% to $2,505.57.

“So far no sanctions have been imposed on Russian platinum group metal exports, but the possibility that some Russian supply could be disrupted going forward will likely be reflected in a higher risk premium,” UBS analysts said in a note.

“We also think the surge in palladium prices is likely to accelerate the shift from palladium to platinum for use in catalytic converters.”

(Reporting by Bharat Govind Gautam in Bengaluru; Editing by Vinay Dwivedi)

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