Gold stable as dollar strengthens, fights against Ukraine crisis

 Gold stable as dollar strengthens, fights against Ukraine crisis.

Gold prices were steady on Monday as the dollar and Treasury yields firmed following a solid U.S.

payrolls report that raised expectations of aggressive rate hikes, while a worsening Ukraine crisis supported safe-haven bids for bullion.

Spot gold was little changed at $1,925.97 an ounce. US gold futures rose 0.3% to $1,929.70.

The OANDA senior said, "While the conflict in Eastern Europe may provide a slight tailwind on the decline in gold prices, it is now very clear that core pricing in gold has come under the influence of higher US yields and a higher US dollar." " Analyst Jeffrey Haley said Asia trade was muted due to the China holiday.

A stronger dollar makes gold less attractive to holders of other currency, while higher yields increase the opportunity cost of holding non-paying bullion.

The dollar made a strong start to the week, while Treasury yields were also higher, as the monthly US jobs report indicated a firmer labor market and the Federal Reserve on track to maintain its hawkish policy stance. likely to keep.

US job data showed the unemployment rate hitting a two-year low of 3.6% and wages accelerating again, prompting the Fed to raise interest rates by 50 basis points in May.

When the Fed releases minutes from its March meeting on Wednesday, investors are looking forward to any discussion of a 50 basis point increase.

Meanwhile, Germany's defense minister said on Sunday that the EU should discuss imposing sanctions on Russian gas imports, after Ukraine and European officials accused the Russian military of atrocities.

Source by internet.

Created by MOHAMMAD SHOAIB.