Gold steady as improved risk appetite counters weaker dollar, yields
![](https://portfolio.investmentguruindia.com/investmentguruimages/upload/post/2022/02/9afd46bdc00606decc83a596ae35b9ef.jpg)
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
Gold prices were steady on Wednesday, hovering close to the$1,800 psychological level, as a weaker dollar and lower U.S. bond yields countered risk appetite spurred by less-hawkish comments from Federal Reserve officials.
Spot gold was at $1,798.21 per ounce, as of 0449 GMT. In the previous session, bullion had touched $1,805.43 as investment demand strengthened. [GOL/ETF]
U.S. gold futures were down 0.2% to $1,798.60.
"The shift towards a more risk-on approach by investors is probably gold-negative, however, the resultant weakness in the dollar helps gold, and the decrease in U.S. TIPS yields has provided support for gold," said Nicholas Frappell, a global general manager at ABC Bullion.
"(St. Louis Fed President James) Bullard's comments on the topic of a 50 bp rise is part of a tendency among Fed officials to soften the markets' take on the pace and extent of tightening in 2022."
A noted hawk, Bullard said on Tuesday he would argue for interest rate rises in March, May and June, but did not favour a half-point move.
Although gold is considered a hedge against inflation, rate hikes would raise the opportunity cost of holding non-yielding bullion.
All three Wall Street benchmarks advanced on Tuesday and the energy index closed at a multi-year high, although seesaw trading reflected investor uncertainty about how to play the current market. [.N]
The dollar index eased off 19-month highs against its rivals, making gold cheaper for other currency holders. [USD/]
Benchmark U.S. 10-year Treasury yields hovered near their lowest levels in a week, with investors pricing in a possibility that the Fed could raise rates as many as five times this year. [US/]
Spot silver was flat at $22.64 an ounce, platinum fell 0.2% to $1,025.00 while palladium shed 0.1% to $2,359.73.
![](https://portfolio.investmentguruindia.com/uploads/news/insurance 123.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Axis Securities Ltd.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Wipro.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/2b1715f7e03b51b0ac9c014eb224fc1f.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/gdp22.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Geojit Financial Services.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Dollar retures 2.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/health22.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Arvind Kapil, MD and CEO, Poonawalla Fincorp.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/stock8.jpg)