Gold Approaches Worst Week since November as Dollar Steadies

Gold is set to perform its worst since November of last year on account of the dollar firming amid Fed interest rate hikes and the ongoing diplomatic discussions between Ukraine and Russia that have dampened investors’ ardor for safe haven assets.

According to Reuters, spot gold fell by 0.5% to $1,932.20 per ounce at 1002 GMT, while the U.S. gold futures plummeted by 0.5% to $1,933.10.

OANDA’s Senior Market Analyst Craig Erlam contended that gold and the dollar “are very choppy, headline-driven markets so we could see plenty more action throughout the day in both directions." He, however, added, "Gold will remain well supported. We could increasingly see dips being bought into as the demand for safe havens and inflation hedges remains strong."

Although gold dropped by 2.7% this week, Fed-sanctioned interest rates have since helped it achieve a marginal bounce back. Spot palladium gained 2.3% to $2,567.02 per ounce but will likely shed 8.8% weekly over retreating fears of potential supply disruptions from Russia, its top producer. Platinum climbed 1.5% to $1,036.53 as silver dipped by 0.4%.