Gold prices were unchanged on Thursday as the dollar gained and yields hovered near multi-year peaks, offsetting support from an escalation in the Ukraine crisis.

FUNDAMENTALS

Spot gold was little changed at $1,943.75 per ounce by 0131 GMT. U.S. gold futures were up 0.4% to $1,944.40.

The dollar index gained on Wednesday, making gold less attractive for other currency holders, as oil prices shot higher again with U.S. President Joe Biden and other European leaders set to impose fresh sanctions against Russia.

The benchmark 10-year Treasury yield hovered close to Wednesday’s peak since May 2019.

Gold is sensitive to higher yields, which increase the opportunity cost of holding non-yielding bullion.

Russian President Vladimir Putin’s threat to switch certain gas sales to roubles sent European futures soaring on concerns the move would exacerbate an energy crunch and jam up deals that run to hundreds of millions of dollars every day.

Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust rose 0.4% to 1,087.66 tonnes on Wednesday – its highest since Feb. 26, 2021.

Palladium, used by automakers in catalytic converters to curb emissions, added 1.5% to $2,549.34 per ounce.

Spot silver was up 0.1% to $25.08 per ounce, while platinum shed 0.3% to $1,016.99.