Gold price stable in a calm market

Gold and silver prices remain relatively stable in a calm market, with futures up slightly. Concerns over the Russian-Ukrainian war, Federal Reserve policy and inflation persist, but without major developments, markets are showing renewed appetite for risk. At the same time, the Russian central bank lowered its main interest rate from 20% to 17%, indicating a stabilization of the Russian financial system despite economic sanctions.

“The price of gold is stable in a slightly calmer market”

The prices of gold and silver are not far from unchanged. In the first place, metal traders are monitoring the main external markets and are calmer to end the trading week. June gold futures were up $0.30 at $1,938.50 and May Comex silver was last up $0.05 at $24.79 an ounce.

Gold and silver prices appear mixed at the start of US action on Friday.

Global stock markets appear mixed but above all higher overnight.

Gold prices and concerns

American stock indices are moving towards slightly higher openings. And that’s when the day’s session in New York begins. Risk aversion is less strong at the end of the week. The Russian-Ukrainian war, a more hawkish US Federal Reserve and rising global inflation still cause serious concerns.

However, from a markets perspective, there have been no major developments on these fronts. This allowed traders and investors to show a little more appetite for risk. And this, this weekend. On the Gold market, the price of Gold is balanced but tends to increase.

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A lowered interest rate

In overnight news, Russia's central bank lowered its main rate. Its interest rate thus drops from 20% to 17%. This is a sign that the Russian financial system is stabilizing. And this after having been seriously disrupted due to war and economic sanctions.

Moreover, the Russian ruble also staged a recovery from its depths seen during the first two weeks of the war.

Reports indicate that JP Morgan has warned that commodity prices (such as the price of Gold which aims to increase or maintain it) could increase by another 40% if investors shift their allocations to raw materials at a time of rising inflation. Problematic inflation has always been bullish for commodity markets.

Nymex crude oil futures prices are firmer today. They are trading around $96.50 per barrel. The US Dollar Index is almost flat early today. It hits a nearly two-year high overnight. The yield on the 10-year US Treasury bond currently stands at 2.67%. Treasury yields rose significantly this week.

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Source: Kitco