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Gold Price Today: Gold flat as Fed rate hike, Ukraine peace talks dent appeal

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Gold Price Today: Gold flat as Fed rate hike, Ukraine peace talks dent appeal


March 17: Gold prices were flat on Thursday, hovering near three-week lows hit in the previous session, after a Federal Reserve interest rate hike boosted Treasury yields and Russia-Ukraine peace talks limited gold’s appeal.

Fundamentals* Spot gold was steady at $1,929.57 an ounce by 0128 GMT, after hitting its lowest since Feb. 28 at $1,894.70 on Wednesday. U.S. gold futures rose 1 percent to $1,928.40.

* The U.S. central bank raised interest rates for the first time since 2018 and laid out an aggressive plan to curb inflation, while pointing to huge economic uncertainty from the war in Ukraine and the COVID-19 health crisis.

* Gold is highly sensitive to rising U.S. interest rates, which increases the opportunity cost of holding non-yielding bullion.

* The Fed’s rate decision lifted the U.S. 10-year Treasury yield to its highest level since May 2019.

* Investors focus on peace talks between Russia and Ukraine as the world looks for a diplomatic solution. Ukrainian President Volodymyr Zelensky said talks were becoming “more realistic” and Russia said the proposals under discussion were “close to a deal.”

* Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.8 percent to 1,070.53 tonnes on Wednesday, the highest since March 2021.

* Palladium, which automakers use to control emissions in catalytic converters, rose 1.8 percent to $2,452.33 an ounce.

* The autocatalyst metal hit a record high of $3,440.76 on March 7 amid concerns about supply disruptions in top producer Russia.

* Spot silver gained 0.3 percent to $25.13 an ounce, while platinum gained 0.7 percent to $1,024.32.

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