Gold was steady after capping a weekly advance, as investors weighed the latest developments in Russia’s war in Ukraine against the impact of tighter monetary policy to curb inflation.
Bullion climbed 1.9% last week as the war in Europe burnished gold’s haven appeal, with holdings in exchange-traded funds backed by the metal rising for a 10th straight week. Investors are seeking a store of value amid inflationary pressures stoked by soaring commodity prices partly caused by the war and ensuing sanctions.
In-person talks between Ukrainian and Russian negotiating teams will resume this week, officials said. Meanwhile, President Joe Biden sought to clarify his call for the removal of Vladimir Putin, saying he wasn’t seeking regime change after European allies raised concern and critics said he was further inflaming tension with Russia.
Traders are also assessing the more hawkish tone by the Federal Reserve and higher U.S. bond yields, which are weighing on non-interest bearing bullion. Wall Street banks increasingly expect the Fed to raise interest rates more aggressively than policy makers are projecting, with Citigroup Inc. economists now seeing four straight half-point moves amid persistent inflation.
Spot gold slipped 0.1% to $1,955.72 an ounce as of 7:24 a.m. in Singapore. The Bloomberg Dollar Spot Index added 0.1% after dropping 0.1% on Friday. Silver and platinum fell. Palladium advanced 0.9% after tumbling to the lowest level since Feb. 17 on Friday.
