March 10 (Reuters) – Gold prices fell on Thursday as traders moved away from safe-haven bets after global shares rallied following a retreat in oil prices.
Spot gold were down 0.5% at $1,981.96 per ounce by 0603 GMT after slumping as much as 1%. U.S. gold futures were unchanged at $1,988.60.
Gold pulled back about 3% in the previous session, its worst intraday decline since January 2021 and dropping from levels that hovered near record high hit in August 2020.
“Suspect there are still plenty of long positions put on in the last couple of days out there that are still being squeezed. With no new Ukraine headlines to chance the dynamic, and with equities rallying strongly in Asia, the downward pressure on gold continues,” said OANDA senior analyst Jeffrey Halley.
Asian shares surged, tracking Wall Street’s overnight gains as planned diplomatic talks between Russia and Ukraine buoyed sentiment.
However, “with Russia being a major commodity producer, sanctions are intensifying the stagflation risk. We believe heightened geopolitical risks and higher inflation will support gold prices,” said ANZ analysts in a note.
A steep rise in oil and other commodities has sparked concerns about a further jolt to rising inflation and the potential for slowing economic growth.
Investors now await the February U.S. consumer price index data later in the day, ahead of the Federal Reserve’s next policy statement on March 16.
Palladium , used by automakers in catalytic converters to curb emissions, was up 0.1% to $2,939.96 per ounce. The metal hit a record high of $3,440.76 on Monday, driven by fears of supply disruptions from top producer Russia.
Among other metals, spot silver < shed 1% to $25.47 per ounce, while platinum fell 1.2% to $1,062.84.