Gold prices inched higher on Tuesday as appetite for risk weakened ahead of U.S. inflation data that could support the Federal Reserve’s aggressive policy stance to contain rising pricing pressures.
Gold climbed to its highest in one-and-half years on Monday and palladium hit an all-time high on safe-haven asset appeal, while nickel soared over 20% on fears of supply disruptions tied to sanctions on Russia and continued fighting in Ukraine.
Gold steadied below the $1,900-level on Wednesday after hitting a nine-month high in the previous session due to the Ukraine crisis, with investors focusing on accelerating inflation and expected tightening of monetary policies by central banks.
Gold eased after hitting a more than eight-month high on Monday, as a plan for the U.S. and Russian presidents to hold a summit on the Ukraine crisis dented safe-haven demand, while looming Federal Reserve rate hikes further pressured the metal.
Gold prices eased on Monday from a three-month high touched in the previous session, pressured by strength in the U.S. dollar and bond yields, although losses were limited as rising tensions surrounding Ukraine supported safe-haven demand for bullion.