PRECIOUS-Gold bound for dismal quarter on aggressive rate hike fears

Reuters

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      Gold down 8% for the quarter
    

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      Silver, platinum set for second straight quarterly
declines
    

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      Palladium adds about 12% so far this quarter
    

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      Dollar faces a weekly decline
    

  
 (Updates prices)
    By Kavya Guduru
       Sept 30 (Reuters) - Gold rose to a one-week high on
Friday as the dollar retreated from recent highs but bullion was
headed towards its worst quarter since March last year, buckling
under fears of impending large interest rate hikes by the U.S.
Federal Reserve.
    Spot gold  XAU=  was 0.1% higher at $1,661.89 per ounce by
1:45 p.m. EDT (1745 GMT) and gained 1.1% so far this week. 
    U.S. gold futures  GCv1  settled 0.2% higher at $1,672.
    "The gold market's at an area where we can see some movement
higher... (but) that's all dependent on what the dollar does and
rates going into the weekend," said Daniel Pavilonis, senior
market strategist at RJO Futures.  USD/ 
    Gold is down 8% for the quarter so far. This would also be
bullion's sixth straight monthly drop, its longest streak of
monthly declines in four years. 
    Gold showed muted reaction after Russian President Vladimir
Putin signed treaties to annex four Ukrainian regions partly
occupied by his forces.  urn:newsml:reuters.com:*:nL1N3110YL  urn:newsml:reuters.com:*:nL8N3113H6
    "We're really facing high-inflation environment, which is
ultimately the reason why the Fed has to be so aggressive. These
macro forces really sap investment appetite from gold and so
investors aren't looking at the metal as proper safe haven
hedge," said Daniel Ghali, commodity strategist at TD
Securities.  urn:newsml:reuters.com:*:nL1N3102OK
    Rising interest rates dim bullion's appeal as they increase
the opportunity cost of holding the non-yielding asset.
    Spot silver  XAG=  added 1.1% at $19.02 per ounce, while 
platinum  XPT=  fell 0.6% to $859.88. Both metals were headed
for their second straight quarterly decline. 
    Palladium  XPD=  shed 1.2% to $2,174.75 per ounce, and has
gained about 12.3% so far this quarter.
    "We expect PGMs to perform better than other metals as the
prospects of the auto sector improve in 2023, particularly
demand for auto catalyst metals platinum and palladium,"
analysts at ANZ said in a note.
    "Issues with mine supply from South Africa mean that both
platinum and palladium markets are likely to remain relatively
tight."
 (Reporting by Kavya Guduru in Bengaluru; Editing by Marguerita
Choy and Shailesh Kuber)
 ((Kavya.Guduru@thomsonreuters.com;))

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