Gold prices rise As Ukraine rejects deadline

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Gold prices rise As Ukraine rejects deadline

On Monday, gold prices rose as safe-haven demand showed no signs of abatement, although the gains were capped by the U.S. Federal Reserve'sFederal Reserve's plan to combat inflation.

Spot gold was up 0.2% to $1,925. By 0316 GMT, 46 per ounce was reached. The U.S. gold futures were down 0.2% to $1,925. A little bit of safe-haven flows are going into gold today because Ukraine has rejected the deadline from Russia, according to Matt Simpson, senior market analyst at City Index.

Ukraine rejected Russian demands to surrender the port city of Mariupol, where residents are besieged with little food, water and power and fierce fighting shows little signs of easing.

The central bank needs to take more aggressive measures to combat inflation, two of the Fed's most hawkish policymakers said on Friday.

According to an essay published on the regional Fed bank's website, Minneapolis Fed President Neel Kashkari said he wants to raise rates to 1.75% to 2% this year.

The chance of holding non-interest paying gold is increased by higher interest rates.

The holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.8% to 1,082. 44 tons on Friday are a high since March 2021, a high since March 2021.

Palladium, used by automakers in catalytic converters to curb emissions, gained 2.8% to $2,561. 25 per ounce. It had hit a record high of $3,440. There were 76 days on March 7, driven by fears of supply disruptions from top producer Russia.

The auto-catalyst metal is responding better to the events in Ukraine because Ukraine officially says no to Russia, so it puts the peace talks on the back foot and brings further concerns over supplying constraints moving forward, Simpson said.

Spot silver rose 0.4% to $25.04 per ounce, platinum rose 0.8% to $1,029.