By Bharat Gautam
March 23 (Reuters) – Gold values rose on Wednesday as investors sought to hedge against soaring inflation and uncertainty caused by events in Ukraine, with a return in U.S. bond yields also gaining. responsibly to the precious metal.
* Spot gold was up 0.42% at $1,930.68 an ounce by 1145 GMT. United States gold futures were up 0.6% at $1,932.90 an ounce.
* “The market appears to be holding up quite well from its sharp downward correction,” supported by ongoing geopolitical uncertainty and good physical demand, independent analyst Ross Norman said.
* Gold prices advanced to near record highs earlier this month, but then saw a gradual decline ahead of a US Federal Reserve monetary policy meeting last week. Since then, they have moved into a more stable range.
* “What’s phenomenal right now and a good indicator of the start of a gold bull market is that demand for ETFs (exchange-traded funds) remains determinedly strong,” as institutional investors now begin to report in the inflation issue, Norman added.
* Gold is considered a safe store of value in times of rising inflation and geopolitical uncertainty.
* Investors are now eagerly awaiting comments from Federal Reserve Chairman Jerome Powell at a Bank for International Settlements summit later in the day for more clarity on monetary policy tightening.
* Among other precious metals, the plant rose 1.2% to $25.04 an ounce; while platinum will be stable at $1,023.60 an ounce; and palladium rose 3% to $2,557.96 an ounce.
(Reporting from Bharat Govind Gautam in Bangalore. Edited in Spanish by Marion Giraldo)