Gains for gold after three days of losses

Gold traded higher on Wednesday, after three declining sessions, as yesterday’s optimism for a diplomatic solution to the Ukraine war today gave way again to skepticism, reaffirming support for “safe havens” such as precious metal.

The reason is the “ice” that today put in the hopes for progress in the talks between the two sides the representative of the Kremlin, Dmitry Peshkov, who more or less “denied” the Ukrainian and Russian negotiators for rapprochement, emphasizing that the meeting in Istanbul did not yielded nothing “hopeful” nor any “progress”.

A position that seems to be confirmed by Russia’s stance on the war fronts, since despite Moscow’s commitment to drastically reduce military operations on the outskirts of Kiev and other parts of Ukraine, Russian troops continue to bomb.

Western officials have also been cautious about advancing the talks, stressing that action, not words, is needed, while many insist Putin’s delay is simply a matter of retreating rather than trying to reorganize the Russian military.

According to analysts, the situation in Ukraine remains very “fragile” and the current decline of the stock markets is “a sign that investors are still reluctant to be exposed to risky assets while continuing to seek the security of investment shelters, such as gold shelters.” .

Thus, the June contract for gold rose by $ 21 or 1.1% on Wednesday, closing at $ 1,939 an ounce.

Earnings for silver, too, with the May contract strengthening by 38 cents or 1.5% to $ 25,113 an ounce.

Investors, however, continue to follow closely the comments of Federal Reserve officials who are increasingly calling for more aggressive interest rate hikes in order to tackle inflation, which is hovering above 40 years. This is because raising interest rates can take gold out of investors’ preferences.

For the rest of the metals, copper for May delivery rose 0.4% to $ 4,751 a pound, the July contract for platinum added 2.3% to close at $ 1,001.20 an ounce and palladium for June delivery rose 6.2 % at $ 2,243.10 an ounce.