Fall on Friday, but gains of 1.3% per week for gold

Gold traded lower on Friday, but the precious metal ended the week with significant gains, with investors turning their attention to the war in Ukraine and the increasingly aggressive rhetoric of the Federal Reserve.

“The danger is that the Russia-Ukraine war will develop [σε 3ο Παγκόσμιο Πόλεμο] “It is limited at the moment and the most immediate concern is the impact of more aggressive interest rates, especially on the economy,” said analysts, explaining the current picture presented by gold futures.

However, analysts say Russian President Vladimir Putin is an “unbalanced factor and the war could quickly escalate and spread”, noting that the possibility provides support for the precious metal prices as it keeps investors’ interest in the so-called “alive” “safe havens” like gold.

At the same time, however, they comment on the clear position of the US on Thursday that any gold purchase transaction related to the Central Bank of the Russian Federation is subject to the existing sanctions imposed by the West against Moscow.

Russia reportedly has $ 132 billion in gold reserves. “Imposition of sanctions on gold-related transactions reduces the liquidity of private and public gold, which makes it more difficult for sanctioned individuals and the Russian government to use this gold as an alternative means of payment or financing.” “This may have an impact on the rise in gold prices, because it reduces the amount of gold that can be used, but the total amount held by individuals and the Russian government is probably small,” the analysts said.

In each case, they have seized it, despite obstacles we can scarcely imagine. ”

On the other hand, estimates that the Federal Reserve will raise interest rates by 50 basis points at its next policy meeting in May have risen this week. Fed Chairman Jerome Powell left the door open for a move of more than 25 basis points on Monday in a bid to curb galloping inflation, with other Fed officials expressing a more aggressive view.

These statements cause an increase in the yields on government bonds and other securities, which makes it less attractive to hold non-yielding assets, such as precious metals, according to analysts.

In the midst of this general climate, on Friday, the April contract for gold fell by $ 8 or 0.4% and closed at $ 1,954.20 an ounce, with the precious metal but retaining profits of 1.3% on a weekly basis, according to Dow Jones Market Data.

A similar picture is recorded by silver, with the May contract losing 30 cents or 1.2% on Friday and closing at $ 25,615 an ounce, but in the five-day period the metal recorded gains of 2.1%.

For the rest of the metals, copper for May delivery fell 0.9 percent to close at $ 4,699 a pound, falling a week earlier. April delivery for platinum fell 2.2% today to close at $ 1,008.50 an ounce, extending its weekly losses to 2.7%. Finally, palladium for June ended the day at $ 2,394.30 an ounce, down 5.4%, with weekly metal losses at 4%.