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 prices retreated on Friday as risk sentiment received a slight boost following Russia President Vladimir Putin’s comments on making “some progress” in talks with Ukraine, easing demand for the safe haven metal.
Spot gold slid below the $2,000 an ounce level, down 0.6% to $1,984.29 by 11:40 a.m. ET. Gold futures also dropped 0.6% to $1,987.30 an ounce in New York.
[Click here for an interactive chart of gold prices]
Meanwhile, the benchmark US 10-year Treasury yield rose, raising the opportunity cost of holding non-yielding bullion, while equities extended gains amid some progress in Russia-Ukraine talks.
Also limiting gold was the anticipation of a rate hike by the US Federal Reserve next week. With inflation ballooning in February, bets that the central bank will raise its benchmark overnight interest rate by at least 25 basis points on March 16, stood at 94%, according to CME’s FedWatch Tool.
“Many positive fundamental factors, like inflation and supply chain disruption still remain… but in the short term, we might have priced a good amount of those into the market,” said David Meger, director of metals trading at High Ridge Futures, told Reuters, adding Friday’s moves were a correction off of recent highs.
“The market’s obviously pricing in subsequent rate hikes. But the path of those rate hikes is clearly what the market will be focused on, moving forward,” Meger said.
“The Russia-Ukraine crisis will continue to support the prospect for higher precious metal prices… due to what this tension will mean for inflation (up), growth (down) and central banks’ rate hike expectations (fewer),” said Saxo Bank analyst Ole Hansen.
Earlier this week, Goldman Sachs’ Jeff Currie said in a Bloomberg interview that “it’s a perfect gold for storm right now,” citing growing investor demand, central bank buying and strong physical demand in the last quarter.
The bank’s global head of commodities research also raised his price target to $2,500 an ounce.
(With files from Reuters)
