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Sept. 22, 2022, 1:56 p.m. EDT

Gold futures up a second session as tensions rise in the Russia-Ukraine war

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By Myra P. Saefong and Joseph Adinolfi

Gold futures climbed on Thursday, with the precious metal settling higher for a second straight session as Russia ratchets up its war effort in Ukraine.

Strength in the U.S. dollar in the wake of the Federal Reserve’s third 75 basis-point interest-rate hike, however, capped gold’s rise.

Price action

  • Gold for December delivery /zigman2/quotes/210039517/delayed GCZ22 +0.57% rose $5.40, or 0.3%, to settle at $1,681.10 per ounce on Comex following a gain of 0.3% on Wednesday.

  • December silver /zigman2/quotes/210319410/delayed SIZ22 +0.82% rose 14 cents, or 0.7%, to $19.617 per ounce after a nearly 1.6% rise Wednesday.

  • December palladium /zigman2/quotes/229904593/delayed PAZ22 -0.72% rose $51.30, or 2.4%, to $2,174.80 per ounce, while October platinum fell $10, or 1.1%, to $906 per ounce.

  • December copper /zigman2/quotes/210059544/delayed HGZ22 +0.90% rose a fraction of a cent, or 0.1%, to $3.471 per pound.

What analysts are saying

Geopolitical tensions resulting from the Ukraine war provided support to haven gold on Thursday, as Russian President Vladimir Putin called up reservists and ratcheted up his nuclear rhetoric.

Strength in the dollar, however, with the ICE U.S. Dollar Index /zigman2/quotes/210598269/delayed DXY -0.08% , a gauge of the dollar’s strength against a basket of rivals, at its strongest level in more than 20 years, limited the gains for gold. The index was up 0.5% to 111.21 in Thursday dealings.

Gold looks “like it wishes to regain” the $1,700 an ounce level here, Peter Spina, president of GoldSeek.com, told MarketWatch.

“News from Russia of [a] partial mobilization and a move to a war stance in Ukraine from a special military operation” supported gold prices on Wednesday, said Spina. “Fears, uncertainties and an escalation of events in Ukraine will underpin gold here.”

But “silver is really showing resiliency here, with “very strong demand under $20 an ounce,” said Spina. Momentum and buying interest is likely to propel silver back above this mark soon, he said.

Read: Silver is outperforming gold this month, and that’s just the start

Also, the fact that the Fed opted not to deliver the 100 basis-point interest-rate rise that some had anticipated was helping to keep gold from substantially weakening, said Naeem Aslam, chief market analyst at AvaTrade.

Still, with the dollar on the rise, “the path of the least resistance for gold prices is highly skewed to the downside,” Aslam said.

In Treasury trading, the 2-year yield /zigman2/quotes/211347045/realtime BX:TMUBMUSD02Y +1.33% has now climbed solidly north of 4% , seen as a level that could unleash stress across markets. The yield has reached its highest level since late 2007.

/zigman2/quotes/210039517/delayed
US : U.S.: Nymex
$ 1,777.50
+10.10 +0.57%
Volume: 51.00
Dec. 6, 2022 9:40a
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/zigman2/quotes/210319410/delayed
US : U.S.: Nymex
$ 22.38
+0.18 +0.82%
Volume: 32.00
Dec. 6, 2022 8:46a
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/zigman2/quotes/229904593/delayed
US : U.S.: Nymex
$ 1,839.60
-13.40 -0.72%
Volume: 9.00
Dec. 5, 2022 5:06p
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/zigman2/quotes/210059544/delayed
US : U.S.: Nymex
$ 3.82
+0.03 +0.90%
Volume: 249.00
Dec. 6, 2022 11:38a
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/zigman2/quotes/210598269/delayed
US : U.S.: ICE Futures U.S.
105.21
-0.08 -0.08%
Volume: 0.00
Dec. 6, 2022 11:51a
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/zigman2/quotes/211347045/realtime
add Add to watchlist BX:TMUBMUSD02Y
BX : Tullett Prebon
4.39
+0.06 +1.33%
Volume: 0.00
Dec. 6, 2022 12:01p
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