Gold is trading flat during early Friday
Gold is trading flat during the early part of Friday’s session. The price of bullion has recently been determined by two main factors: the hawkishness of the Fed, on one side, and the ups and downs of geopolitical risk on the other. As the Federal Reserve becomes increasingly determined to tighten policies to control inflation, treasury yields have been surging and the dollar has gained ground on other major currencies, in a dynamic that weighs down on gold. However, the ongoing war in Ukraine and the geopolitical risk emanating from there has acted as a counterweight, offering support to the precious metal’s price by increasing demand for safe-haven assets. As things stand, at least in the short term, the price action of gold is likely to remain rangebound, caught between these two opposing vectors.
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