Gold slips; set for best quarter in 6 as Ukraine crisis stokes demand

[BENGALURU] Gold inched lower on Thursday (Mar 31) but prices were set for their biggest quarterly gain since September 2020, as the Russia-Ukraine conflict lifted demand for the safe-haven metal.

Spot gold was down 0.3 per cent at US$1,926.46 per ounce by 2.45 am GMT. US gold futures were down 0.4 per cent at US$1,931.00.

The metal has gained about 5.6 per cent so far in the quarter and 1 per cent in the month.

Ukrainian forces are preparing for new Russian attacks in the east of the country as Moscow builds up its troops there after suffering setbacks near the capital Kyiv, President Volodymyr Zelensky said on Thursday.

The dollar index slipped to a near 1-month low in the previous session, making gold less expensive for other currency holders.

US Treasury yields fell while a key part of the yield curve steepened on Wednesday, unwinding recent moves betting that aggressive Federal Reserve policy tightening could send the world's largest economy into recession.

Lower yields reduce the opportunity cost of holding non-paying bullion.

Spot silver fell 0.7 per cent to US$24.67 per ounce but was on course for its best quarterly rise since June 2021. Platinum shed 0.6 per cent to US$984.26 but was set for its biggest quarterly gain since March 2021.

Palladium was down 0.5 per cent to US$2,255.28 but was on course for its sharpest quarterly jump since September 2020.

The auto-catalyst metal has tumbled about 40 per cent since scaling an all-time peak on Mar 7 as supply concerns from Russia eased. REUTERS