Gold prices were in a range-bound trade on Thursday, as markets exercised caution over the Russia-Ukraine conflict and ahead of U.S. inflation data that could give new clues on the policy stance of the U.S. Federal ReserveFederal Reserve.
Spot gold was flat at $1,943. By 0740 GMT, 33 per ounce was reached. The US gold futures were up 0.3% at $1,942. The market is trying to digest what is going to be more pressing this year because of the war, and resolution seems close and people are looking at what the Fed has come to speak about - they want to tackle high inflation, and the interest rate is going to go up quite quickly this year, said Brian Lan, managing director at GoldSilver Central.
The support at $1,917 and the resistance at $1,950 have been seen in gold prices for a while. The outlook for U.S. interest rates and the key U.S. weekly jobless claims data, a measure of the country's economic health, was assessed by investors at 1230 GMT.
Ukraine's leader called for solidarity on Thursday, a month since Russia began its invasion.
Gold prices hit new record highs earlier this month, but then fell rapidly into a key U.S. central bank policy meeting last week. They have since moved into a more steady range. The FEDWATCH yields on the benchmark U.S. 10 year Treasury hit their highest in nearly three years on Wednesday, increasing the chance of holding zero-yield bullion. SPDR Gold Trust's US holdings, which is the world's largest gold-backed exchange-traded fund, rose 0.4% to 1,087. It was its highest since Feb. 26, 2021, and has accumulated 66 tons on Wednesday. The spot silver XAG of GOL ETF was up 0.1% at $25.08 per ounce, and the platinum XPT fell 0.5% to $1,015. 24 and palladium XPD increased by 0.6% to $2,526.