LONDON: Gold steadied on Thursday near the one-week high hit the previous session, supported by the tension between Britain and Russia, while a modest bounce in the dollar capped gains.

The dollar index consolidated gains versus a currency basket before next week’s US Federal Reserve meeting, while the yield on US Treasuries and German Bunds rose for the first time in four days.

Spot gold dipped 0.2 per cent to $1,322.50 per ounce at 1124 GMT but still close to Wednesday’s one-week high, while US gold futures for April delivery were down 0.2pc at $1,322.60 per ounce.

Moscow said it would retaliate soon for London’s move to expel 23 Russian diplomats over a nerve toxin attack on a Russian former double agent in the Britain. “Gold is finding support from the escalating political crisis between the UK and Russia,” Commerzbank said in a note.

Silver dipped 0.2pc to $16.48 per ounce and platinum fell 0.5pc to $954.20 per ounce. Palladium dipped 0.1pc higher to $985.75 per ounce after hitting $1,006.30 an ounce in the previous session, its highest since March 1.

Published in Dawn, March 16th, 2018