Gold flat as firmer dollar counters support from Ukraine crisis

April 8: Gold prices remained trapped in a tight range on Friday as the dollar firmed on prospects of aggressive interest rate hikes by the U.S. Federal Reserve, partially offsetting safe-haven demand fuelled by the lingering Russia-Ukraine conflict.

FUNDAMENTALS

* Spot gold was flat at $1,933.19 per ounce, as of 0128 GMT. U.S. gold futures were unchanged at $1,937.80.

* The metal has gained nearly 0.5% so far in the week.

* The U.S. dollar climbed to a near two-year high against a basket of currencies and was set for its best weekly gain since early-March, backed by hawkish remarks from several Federal Reserve policy makers who are calling for a faster pace of interest rate increases to curb rapid inflation.

* A stronger dollar makes gold less attractive for other currency holders.

* Minutes of the Fed's March 15-16 meeting showed deepening concern among policymakers that inflation had broadened through the economy, with many participants prepared to raise rates in 50-basis-point increments in coming months.

* The benchmark U.S. 10-year Treasury yield touched a three-year high in the previous session, increasing the opportunity cost of holding non-yielding bullion.

* The Ukraine crisis, however, lifted bullion's appeal as an inflation hedge and a safe-haven asset through the week.

* Russia gave the most sombre assessment so far of its invasion of Ukraine, describing the "tragedy" of mounting troop losses and the economic hit from sanctions, as Ukrainians were evacuated from eastern cities before an anticipated major offensive.

* Russia's central bank said due to a "significant change in market conditions" it would buy gold from commercial banks at a negotiated price from April 8.

* Spot silver edged 0.2% higher to $24.63 per ounce.

* Platinum was up 0.2% at $964.39 and palladium rose 1% to $2,255.31. However, both metals were set for a fifth consecutive weekly loss.