Gold Climbs as Sanctions Raise Concern Over Global Growth

3.3.22 - Gold Climbs on Global Growth Concerns

Gold last traded at $1,934 an ounce. Silver at $25.16 an ounce.

NEWS SUMMARY: Precious metal prices steadied Thursday despite a firmer dollar. U.S. stocks slid as investors monitored conflict.

Bloomberg/Yahoo Finance--"Gold extended gains as investors weighed mounting risks to global growth from sanctions on Russia in the wake of its invasion of Ukraine.

Treasuries climbed, and traders are abandoning bets on a half-point Federal Reserve hike this month amid concern that an escalation of war will weigh on the economy. U.S. equities fell while the dollar advanced....

Bullion remains 'largely supported amid haven flows due to the Ukraine situation,' said Fawad Razaqzada, market analyst at ThinkMarkets.

The metal also got additional support from falling bond yields, which are further weighing on real yields with inflation continuing to soar. Investors are reducing their expectations about aggressive tightening from central banks, according to Razaqzada.

Bullion ETF holdings registered the biggest daily inflow in three weeks on Monday, according to Bloomberg data.

'Gold ETF inflows is a clear sign generalist investors are sourcing war hedges and safe havens,' said Nicky Shiels, head of metals strategy at MKS PAMP SA."