Gold futures snapped a three-session losing streak and moved higher on Wednesday, as the commodity attracted safe-haven buying amid skepticism over Russia’s promise to scale down military operations in Ukraine.
According to reports, Russia attacked certain areas in Ukraine that were part of Moscow’s pledge. Doubts about Russia’s pledge rendered the mood in stock markets a bit bearish and prompted investors to look for safer assets such as gold.
The dollar’s weakness contributed significantly to gold’s sharp uptick. The dollar index dropped to 97.69, before recovering some lost ground.
Gold futures for June ended higher by $21.00 or about 1.1% at $1,939.00 an ounce.
Silver futures for May ended up by $0.377 at $25.113 an ounce, while Copper futures for May settled at $4.7505 per pound, up $0.0195 from the previous close.
Moscow pledged to cut military operations around Kyiv and Chernihiv in an effort to de-escalate war.
Ukraine reacted with skepticism to the promise while the United States warned the threat isn’t over.
U.S President Joe Biden asked whether the Russian announcement was a sign of progress in the talks or an attempt by Moscow to buy time to continue its assault.
Moscow’s lead negotiator, Vladimir Medinsky, said that there is still “a long way to go” to reach a mutual agreement with Ukraine.
A report released by payroll processor ADP showed private sector employment in the U.S. jumped by 455,000 jobs in March after surging by an upwardly revised 486,000 jobs in February.
Economists had expected private sector employment to climb by 450,000 jobs compared to the addition of 475,000 jobs originally reported for the previous month.
Data released by the Commerce Department showed the U.S. economy grew by slightly less than previously estimated in the fourth quarter of 2021.
The Commerce Department said real gross domestic product increased by 6.9% in the fourth quarter, reflecting a modest downward revision from the previously estimated 7% spike. Economists had expected GDP growth to be unrevised.
The slightly slower than previously estimated GDP growth primarily reflected downward revisions to consumer spending and exports that were partly offset by an upward revision to private inventory investment.