Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.7% to close near $1,936 as the intensifying crisis in Ukraine pressured Wall Street and drove investors back toward safe havens.

Russia continued to press its war against Ukraine, shelling civilian infrastructure in its effort to take multiple major cities including Kyiv and Kharkov. Meetings today between Russian and Ukrainian negotiators over a ceasefire went nowhere, according to reports.

One day after rebounding on upbeat US data and hopes for the talks, all three major US stock indexes pulled back as risk-off sentiment returned. The Dow fell 0.4% while the S&P 500 lost 0.7% and the Nasdaq tumbled 1.7%.

Benchmark 10-year Treasury yields also receded as investors flocked back to the safety of government bonds and gold. Falling yields support the metal by reducing the opportunity cost for holding it instead on bonds as a safe-haven asset.

Gold also caught bids as an inflation hedge after Fed Chair Jerome Powell told Congress that the Ukraine crisis is likely to drive inflation higher in the short term. Separately, unit labor costs rose 0.9% in Q4, according to the Labor Department, revised up from the 0.3% initially reported.

Powell reiterated his preference for a quarter-point increase in interest rates when the Fed meeting this month despite calls for a half-point increase from some committee members.

Gold's gains were capped by a stronger dollar, which added 0.4% against major rivals on flights to safety. A rising dollar makes gold more expensive in other currencies, limiting overseas demand.

The other precious metals were also higher, with silver rising 0.1% while platinum and palladium picked up 1.2% and 2.5%, respectively.

At the Comex close: April gold gained $13.60 to $1,935.90; May silver rose 2 cents to $25.21; April platinum picked up $12.60 to $1,080.80; and June palladium jumped $65.90 to $2,730.80 an ounce.