Breaking News
Get 40% Off 0
Is NVDA a 🟢 buy or 🔴 sell? Unlock Now

Gold drops to 2-week low on Russia-Ukraine talks, rate hike prospects

Published Mar 15, 2022 10:19AM ET Updated Mar 15, 2022 12:46PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Granules of gold and silver are seen in glass jars at the Krastsvetmet non-ferrous metals plant in the Siberian city of Krasnoyarsk, Russia March 10, 2022. REUTERS/Alexander Manzyuk
 
XAU/USD
-0.08%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CBKG
+1.12%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Gold
+0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Brijesh Patel

(Reuters) - Gold fell nearly 2% on Tuesday to a two week trough as hopes of progress in peace talks between Russia and Ukraine coupled with the likelihood of a U.S. interest rake hike dented demand for the safe-haven asset.

Spot gold fell 1.35 % to $1,924.81 per ounce by 12:24 p.m. ET (1624 GMT), after earlier touching its lowest since March 1 at $1,913.10.

U.S. gold futures fell 1.7% to $1,927.10.

"There's a lesser need for safe havens at the moment given peace talks in Ukraine, the upcoming Federal Reserve rate hike and some pullback in commodity prices across the board," said David Meger, director of metals trading at High Ridge Futures.

Talks between Russia and Ukraine, discussing a ceasefire and a withdrawal of Russian troops from Ukraine are ongoing, one of Ukraine's negotiators said.

The Fed is expected to raise interest rate by 25 basis points on Wednesday to fight soaring inflation.

The prospect of the first U.S. rate hike in three years lifted U.S. 10-year treasury yields to multi-month highs. Higher interest rates increase the opportunity cost of holding non-yielding bullion.

"The first rate hike move from the U.S. quite often signals a low point in gold, so we'll see what kind of signal they send tomorrow, and how hawkish their statement is, which will probably determine the short-term outlook from here," said Saxo Bank analyst Ole Hansen.

Spot palladium XPD= was up 2.3% at $2,442.16 per ounce, after its weakest session in two years on Monday, as supply fears receded.

The rising COVID-19 cases in China could also lower demand for the autocatalyst metal amid fresh lockdowns, said Bart Melek, head of commodity strategies at TD Securities.

"It's a two-prong impact here-on the supply side, there's less risk, while on the demand side, potentially less demand."

Silver fell 0.6% to $24.87, while platinum XPT= slipped 3.3% to $996.32.

Gold drops to 2-week low on Russia-Ukraine talks, rate hike prospects
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email