Gold edged up above $1,970 an ounce on Wednesday, hovering near its highest levels in a month, amid concerns of an escalation in the Ukraine conflict after Putin described the on-and-off peace negotiations as “a dead-end situation,” while Biden said Russia’s war in Ukraine amounted to genocide.
The metal also benefited as a hedge against inflation after latest data showed the US annual inflation rate rose 8.5% in March, accelerating at its fastest pace since December 1981. Meanwhile, investors remained cautious as a strong inflation print bolstered the case for a more aggressive Federal Reserve policy tightening, with Fed Governor Lael Brainard reaffirming the central bank’s hawkish stance.