Traders evaluate seven standard raises for 2022
This week, gold prices plummeted as bond yields surged ahead of a critical US Federal Reserve meeting when interest rates are expected to be raised.
The value of precious metals fell after reaching a high of nearly $5 last week, as demand for the safe-haven asset grew in response to Russia’s invasion of Ukraine and growing inflation.
Palladium up after biggest drop in two years
According to Bloomberg statistics, the crisis in Ukraine has resulted in a continuous infusion of cash into bullion-backed exchange-traded funds, driving total assets to their highest level in a year.
After increasing to their highest level since July 2019, 10-year Treasury yields have held steady, diminishing the attraction of interest-free gold.
“Any changes in the present situation in Ukraine are likely to overshadow the Fed’s attention, and inflation is predicted to continue high for some time, keeping gold and silver prices low,” said John Feeney, a business analyst at the Guardian. gold Australia.
Palladium rose 1.7 percent after falling 15% on Monday, the most since March 2020, as supply concerns eased. The metal is free from limitations since it is primarily used in gasoline engine catalytic converters.