AEMA, coalition launch legal challenge to BLM Conservation and Landscape Health Rule
The American Exploration & Mining Association was joined by a coalition in filing a challenge last Friday in the Wyoming district court.
Gold edged higher on Wednesday as inflation risks and the intensifying Ukraine crisis propped up demand for safe havens, although a firmer dollar and high bonds yields placed a cap on bullion’s gains.
Spot gold rose 0.5% to $1,932.09 per ounce by 12:20 p.m. ET, continuing to recover from its worst week since June. US gold futures traded 0.4% higher at $1,930.20 per ounce in New York.
[Click here for an interactive chart of gold prices]
“You’re seeing a little bit of safe-haven demand and a little perceived bargain hunting at lower price levels in the gold market,” Jim Wyckoff, senior analyst at Kitco Metals, told Reuters.
Gold had scaled towards record highs earlier in the month, but retreated sharply from those levels in the run-up to last week’s Federal Reserve meeting. Prices have now moved into a more steady range, as the market digests a more hawkish outlook from policymakers.
High inflation is in favour of precious metals and it is “not going to go away anytime soon,” Wyckoff said, adding that rising bond yields were limiting the gains in gold and could force the metal to trade “sideways and choppy.”
On Wednesday, benchmark US 10-year Treasury yields touched their highest in nearly three years, increasing the opportunity cost of holding gold. The dollar was also higher on the day, making gold expensive for other currency holders.
Meanwhile, holdings of the world’s largest gold-backed ETF, SPDR Gold Trust, hit their highest since March 2021 this week.
“What’s phenomenal at the moment and a good indicator of a beginning of a gold bull market is ETF (exchange traded fund) demand remains remarkably strong”, independent analyst Ross Norman said.
(With files from Reuters)
