Gold Prices: Gold eases as dollar holds firm on safe-haven flows


April 5: Gold inched lower on Tuesday as the U.S. dollar held firm on rising prospects of more Russian sanctions, and bigger interest-rate hikes by the Federal Reserve to rein in inflation.

FUNDAMENTALS


* Spot gold was down 0.2% at $1,929.60 per ounce by 0203 GMT. U.S. gold futures were flat at $1,933.60.

* The dollar index was unchanged after three straight sessions of gains as talks of further sanctions against Moscow increased. A stronger dollar makes gold less attractive for other currency holders.

* The United States and Europe were planning new sanctions to punish Moscow over civilian killings in Ukraine, and President Volodymyr Zelenskiy warned more deaths were likely to be uncovered in areas seized from Russian invaders.

* U.S. two-year Treasury yields climbed to their highest level since early-2019 and 10-year yields ticked higher on Monday. Higher yields increase the opportunity cost of holding non-paying bullion.

* Gains on Wall Street also dimmed bullion’s appeal, as the Nasdaq and S&P 500 were boosted by mega-caps and a 20% jump in Twitter’s shares.

* Spot silver edged 0.1% lower to $24.48 per ounce, platinum was little changed at $986.06 and palladium rose 0.7% to $2,289.68.



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