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Gold eyes first gain in 5 sessions as dollar takes a leg lower after Fed rate hike

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Gold futures surged Thursday, poised to post their first gain in five sessions as the dollar weakened and investors deemed the first Federal Reserve interest-rate hike since 2018 as not much of a headwind to bullion in the near term given high inflation in the E.U. and U.S. and the desire for a safe haven due to the war in Ukraine.

“Investor concerns of continued high levels of inflation, even as the Fed begins tightening, will likely continue to support gold prices,” said Jeff Klearman, portfolio manager at GraniteShares, which offers the GraniteShares Gold Trust (BAR), adding that although real yields are rising, they remain negative, also providing support for gold prices.

“In other words, the opportunity cost of owning gold remains negative, supporting gold prices,” Klearman told MarketWatch late Wednesday afternoon.

April gold
GCJ22,
+2.13%

 rose $31.70, or 1.7%, at $1,940.90 an…

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