Gold flat as higher U.S. yields counter safe-haven bids
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
Gold was flat on Wednesday, holding near a nine-month high hit in the last session, as safe-haven demand was offset by a rise in Treasury yields following the first wave of U.S. and European sanctions on Russia for sending troops into eastern Ukraine.
FUNDAMENTALS
* Spot gold was little changed at $1,898.63 per ounce, as of 0147 GMT, after scaling its highest since June 1 at $1,913.89 per ounce on Tuesday. U.S. gold futures shed 0.3% to $1,901.90.
* The United States, the European Union and Britain announced plans to target banks and elites while Germany halted a major gas pipeline project from Russia, which they say has amassed more than 150,000 troops near Ukraine's borders. Moscow has denied planning an invasion.
* Actions the Joe Biden administration took on Tuesday and may take soon to punish Russia's economy over its aggression in Ukraine are not intended to hit global energy markets, a senior U.S. State Department official said.
* Yields on U.S. Treasuries edged higher on Tuesday. [US/]
* St. Louis Fed President James Bullard has been among the most hawkish voices at the Federal Reserve in recent months, pushing for 100 basis points worth of rate hikes over the next three meetings.
* Higher yields and interest rate hikes dent the appeal of bullion by raising the opportunity cost of holding non-interest paying gold.
* Spot silver was up 0.2% at $24.13 per ounce, platinum was flat at $1,075.75 and palladium rose 0.3% to $2,353.69.
