Gold price set to post biggest quarterly gain

FE Team | Published: March 31, 2022 22:32:11

SINGAPORE, Mar 31 (Reuters): Gold was on course to post its biggest quarterly gain since September 2020 as the safe-haven metal's appeal was lifted by the Russia-Ukraine conflict and concerns over sky-high inflation.
However, by 1129 GMT on Thursday, spot gold slipped 0.2 per cent to $1,929.20 per ounce, as oil prices fell. US gold futures fell 0.3 per cent to $1,932.60.
Oil plunged on news that the United States was considering releasing a large quantity of its Strategic Petroleum Reserve to tackle high fuel prices.
"This (lower oil prices) has somewhat allayed the inflation concerns of market participants, meaning that gold as a store of value appears to be in less demand initially today," Commerzbank said in a note.
Bullion has gained about 5.5 per cent this quarter as Russia's invasion of Ukraine in late February drove gold to a near record high earlier this month.
Along with the Ukraine crisis, worries over high inflation and concerns over whether efforts by major central banks are enough to rein it in, are weighing on the economy and helping gold do well, said Brian Lan, managing director at dealer GoldSilver Central.