Gold futures touched their lowest intraday level in over a month on Tuesday after news reports indicated tentative signs of progress in talks between Russia and Ukraine, crimping demand for traditional safe-haven assets, including precious metals.
“This could be a rough week for gold as renewed peace talks rekindle risk appetite,” said Lukman Otunuga, manager, market analysis at FXTM, in a market update. “An appreciating dollar and rising Treasury yields are likely to rub salt into the wound, sending the precious metal on a slippery decline.”
On top of this, the U.S. jobs report on Friday “could compound gold’s woes if the numbers exceed market expectations,” he said.
Gold for April delivery
GC00,
-1.42%
GCJ22,
-1.42%
fell $30.50.10, or 1.6%, to $1,909.30 an ounce on Comex after touching a low at $1,888.30 — the lowest intraday price for a most-active contract since Feb. 25, according to FactSet data.
May silver
SI00,
-1.83%
SIK22,
-1.83%
also fell 71.6 cents, or 2.8%, to $24.48 an ounce.
Russian news agency TASS quoted Russia’s deputy defense minister as saying the country’s military would “radically reduce” activity outside Kyiv and Chernihiv, according to the BBC. Russian news agencies also quoted Moscow’s negotiators reporting progress after talks with Ukrainian counterparts resumed in Turkey.
The reports have prompted traders to boost bets on riskier assets, said Naeem Aslam, chief market analyst at AvaTrade, in emailed comments. U.S. benchmark stock indexes traded broadly higher in Tuesday dealings following the reports.
“Gold prices are losing their mojo as investors believe that most of the risk in relation to the Ukraine and Russian war is fully priced,” Aslam wrote.
In other Comex trading, May copper
HGK22,
+0.22%
tacked on nearly 0.1% to $4.73 a pound. April platinum
PLJ22,
-1.72%
lost 2.5% to $966.50 an ounce and June palladium
PAM22,
-6.17%
traded at $2,110 an ounce, down 5.9%.
