Gold is Moving Away From Its Highs as The Dollar Consolidates

Gold prices fell on Wednesday after approaching a record level, with the dollar holding near its highest level in 21 months and investors taking some profits, while the price of palladium rose after the Ukrainian crisis raised fears of a lack of supplies from Russia, its largest producer.

And the price of gold in spot transactions fell 0.4% to $ 2044.60 an ounce, after it rose to $ 2069.89 an ounce in the previous session, close to the record level of $ 2072.49 recorded in August 2020.

The price of the US dollar settled near its highest levels in several months, which made the dollar-denominated gold more expensive for buyers in other currencies.

Analysts said that gold, which is a safe haven for value during global crises, may rise to its highest levels ever if conditions in Ukraine worsen amid existing concerns about inflationary risks.

The price of palladium rose 1.5 percent to $3,226.46 an ounce, up 38 percent since the start of the Russian invasion of Ukraine on February 24.

Russia is a major producer of palladium, which is used in the automobile industry.

Spot silver prices rose 0.7% to $26.58 an ounce, after approaching a nine-month high on Tuesday.

The price of platinum rose 1.5 percent to $1,170.76 an ounce.