GOLD HIGHER, OIL LOWER

GOLD GAINED yesterday as Russian President Vladimir Putin’s move to mobilise more troops over the conflict in Ukraine drew investors to the safe-haven asset, offsetting pressure from a firmer dollar and looming US interest rate hikes.

Spot gold rose 0.3% to $1 667.41 (about R29 504) an ounce by 5.46pm. US gold futures rose 0.3% to $1 675.80 an ounce.

“A portion of the reason (for gold’s gains) were some comments by Russian President Putin in regards to escalating the conflict in Ukraine. … That’s clearly a supportive factor,” said David Meger, director of metals trading at High Ridge Futures.

Putin yesterday called up 300 000 reservists to fight in Ukraine and said Moscow would respond with the might of all its vast arsenal if the West pursued its “nuclear blackmail”.

“In recent months gold had tended not to see much, if any, safe-haven demand on global concerns. … Precious metals traders apparently reckon Putin’s threats are a big deal,” Jim Wyckoff, senior analyst at Kitco Metals, said in a note.

Bullion, however, faced headwinds from the dollar which jumped to a new two-decade high, making gold more expensive for overseas buyers, with elevated Treasury yields adding further pressure.

The spotlight was on the the US Federal Reserve’s policy decision expected last night, with the Fed widely expected to hike interest rates by 75 basis points, followed by Fed chairman’s Jerome Powell’s news conference.

Meanwhile, spot silver gained 0.7% to $19.45 an ounce, while platinum fell 0.9% to $914.37. Palladium dropped 0.7% to $2152.11 an ounce.

Meanwhile, oil prices slid about 1% to a near two-week low yesterday as the US dollar soared, the country’s petrol demand declined and investors worried about a possible global recession.