Gold prices were flat on Thursday as risk appetite increased after the US Federal Reserve chairman tried to appease fears about aggressive interest rate hikes, offsetting safe-haven demand spurred by the Russia-Ukraine conflict.
Spot gold held its ground at $1,927.18 per ounce. US gold futures rose 0.4% to $1,929.90.
Ukraine’s second-biggest city, Kharkiv, suffered heavy bombardment on Wednesday as Russia’s week-long invasion was denounced by the United Nations in a historic vote.
Fed Chairman Jerome Powell said the central bank would begin “carefully” raising interest rates at its upcoming March meeting but be ready to move more aggressively if inflation does not cool as quickly as expected.
Wall Street grew and benchmark US 10-year Treasury yields edged higher on Wednesday.
Even though gold is considered a safe investment during political and economic uncertainty, it is highly sensitive to rising US interest rates, which increases the opportunity cost of holding bullion.
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