Gold Rises as Dollar Rises, Yields Weak; Progress in Russia-Ukraine talks weighs

Gold prices rose on Wednesday, boosted by a drop in US dollar and Treasury yields, although signs of progress in peace talks between Russia and Ukraine reduced the metal’s safe-haven appeal and kept gains in check.

And the spot gold price rose 0.3 percent to $ 1923.95 an ounce by 0210 GMT. US gold futures rose 0.5% to $1,927.70.

The metal fell as much as 1.8% on Tuesday to its lowest level since February 28 at $1,889.45.

“(The weaker) dollar provided a level of support for gold… Bond prices rebounded from a major support level yesterday helping to push yields lower despite the supposed rise in risk across equities. This provided another pillar of support for that,” said Matt Simpson, chief market analyst. In City Index.

He added that due to gold’s support, investors remain concerned about Russia’s true intentions regarding their pledge to reduce “military operations”.

Ukraine responded with skepticism to Russia’s promise in negotiations to scale back military operations around Kyiv and another city as some Western countries expected Moscow to intensify its offensive in other parts of the country.

The dollar index fell to its lowest level in more than a week in the previous session, making gold less expensive for holders of other currencies. [USD/]

Yields on benchmark US 10-year bonds have also fallen from nearly three-year highs, and lower yields have lowered the opportunity cost of holding non-yielding bullion. [US/]

Holdings of the world’s largest gold-backed trading fund, the SPDR Gold Trust, fell 0.2% to 1,091.44 tons on Tuesday. [GOL/ETF]

Spot silver rose 0.1% to $24.78 an ounce and platinum rose 0.9% to $991.49.

Palladium rose 1.5 percent to $2,182.15, after falling to a two-month low of $2,032.97 in the last session.

The auto-catalyzed metal is down nearly 40% since hitting an all-time high on March 7 as supply concerns from Russia eased.

(Reporting by Asha Cestla in Bengaluru; Editing by Rashmi Aish)

(The title and image for this report may have been reformulated only by the Business Standard staff; the rest of the content is automatically generated from a shared feed.)

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