Gold inched lower on Thursday but prices were set for a second consecutive weekly gain as the Ukraine crisis and broadening inflationary pressures lifted the safe-haven metal’s appeal.
Spot gold was little changed at $1,974.28 U.S. per ounce Thursday morning, while U.S. gold futures were down 0.25% at $1,979.80.
The metal has gained more than 1% so far in the week, with markets closed on Friday for a holiday.
Federal Reserve Governor Lyle Brainard said on Tuesday the U.S. central bank would conduct a series of rate hikes and begin reducing its bond holdings as soon as June to help bring down inflation that hit a four-decade high in March.
Meanwhile, U.S. President Joe Biden announced an additional $800 million in military assistance to Ukraine on Wednesday, ahead of a wider Russian assault expected in eastern Ukraine.
Non-yielding bullion is considered a safe store of value during uncertain times and a hedge against inflation.
The U.S. dollar index eased off May 2020 highs following a dip in Treasury yields, making gold more attractive for other currency holders.
Spot silver was down $0.62% to 25.56 per ounce, platinum fell about 1.1% to $975.84 and palladium rose 2.8% to $2,379.72.