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Bengaluru — Gold prices hit a more than one-week low on Tuesday, as US treasury yields climbed ahead of an expected rate hike from the Federal Reserve, while hopes for progress in Russia-Ukraine talks further dampened the metal’s safe-haven appeal.
Spot gold was down 0.6% at $1,940.06 an ounce by 4.24am GMT, after touching its lowest since March 4 at $1,938.77 earlier in the session. US gold futures fell 0.9% to $1,942.90.
Gold prices are slipping because of, “the US Federal Reserve’s normalisation of monetary policy, recovering bond yields, strengthening dollar, as well as continued easing of restrictions as vaccination rates continue to rise”, Fitch Solutions said in a note.
US treasury yields jumped to more than two-and-a-half-year highs earlier, ahead of what is expected to be the Fed’s first rate hike in three years on Wednesday to try to tame soaring inflation that shows no signs of slowing. Gold is sensitive to rising US interest rates, which increase the opportunity cost of holding non-yielding bullion.
Spot gold may seek a support in a zone of $1,925-$1,929 an ounce, according to Reuters’ technical analyst Wang Tao.
Russian and Ukrainian delegations held a fourth round of talks on Monday but no new progress was announced. Discussions are due to resume on Tuesday.
Palladium, used by carmakers in catalytic converters to curb emissions, rose 0.3% to $2,394.71 an ounce, after declining more than 15% in the previous session on easing supply fears and on hopes of a de-escalation in the Ukraine crisis.
Russian mining giant Nornickel’s biggest shareholder told Russian RBC TV on Saturday that the group had managed to secure alternative routes for its palladium deliveries even as it faced logistical constraints.
Spot silver shed 0.7% to $24.85 an ounce, while platinum was down 0.2% to $1,027.73.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Gold falls to more than one-week low
Bengaluru — Gold prices hit a more than one-week low on Tuesday, as US treasury yields climbed ahead of an expected rate hike from the Federal Reserve, while hopes for progress in Russia-Ukraine talks further dampened the metal’s safe-haven appeal.
Spot gold was down 0.6% at $1,940.06 an ounce by 4.24am GMT, after touching its lowest since March 4 at $1,938.77 earlier in the session. US gold futures fell 0.9% to $1,942.90.
Gold prices are slipping because of, “the US Federal Reserve’s normalisation of monetary policy, recovering bond yields, strengthening dollar, as well as continued easing of restrictions as vaccination rates continue to rise”, Fitch Solutions said in a note.
US treasury yields jumped to more than two-and-a-half-year highs earlier, ahead of what is expected to be the Fed’s first rate hike in three years on Wednesday to try to tame soaring inflation that shows no signs of slowing. Gold is sensitive to rising US interest rates, which increase the opportunity cost of holding non-yielding bullion.
Spot gold may seek a support in a zone of $1,925-$1,929 an ounce, according to Reuters’ technical analyst Wang Tao.
Russian and Ukrainian delegations held a fourth round of talks on Monday but no new progress was announced. Discussions are due to resume on Tuesday.
Palladium, used by carmakers in catalytic converters to curb emissions, rose 0.3% to $2,394.71 an ounce, after declining more than 15% in the previous session on easing supply fears and on hopes of a de-escalation in the Ukraine crisis.
Russian mining giant Nornickel’s biggest shareholder told Russian RBC TV on Saturday that the group had managed to secure alternative routes for its palladium deliveries even as it faced logistical constraints.
Spot silver shed 0.7% to $24.85 an ounce, while platinum was down 0.2% to $1,027.73.
Reuters
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