LONDON, Apr 08 (Reuters): Gold prices traded in a narrow range on Friday caught between expectations of aggressive US interest rate increases and jitters over high inflation and the economic fallout of the Ukraine crisis.
Spot gold ticked 0.1 per cent lower to $1,931.00 per ounce by 1114 GMT, but was up 0.3 per cent for the week. US gold futures GCv1 eased 0.1 per cent to $1,935.80.
"On one side we have geopolitical risks generated by the war in Ukraine and rising inflation offering support to the precious metal ... on the other side we have the Federal Reserve's increasingly hawkish stance," said ActivTrades senior analyst Ricardo Evangelista.
"Until one of these factors gains clear preponderance over the other, gold prices are likely to remain within the current range."
Earlier in the day, the dollar index hit its highest since May 2020, bolstered by minutes of the Fed's March policy meeting that showed "many" policymakers were prepared to raise rates in half-percentage-point increments in coming meetings to curb inflation.
Gold price subdued on US rate hike expectations
FE Team | Published: April 08, 2022 21:11:34
Gold price subdued on US rate hike expectations
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