Title: Gold Down as Ukraine and Russia Set to Resume Peace Talks, Dollar Strengthens

Mar 28, 2022 01:09AM ET

By: AnalysisWatch

Gold prices fell in Asia on Monday morning as the resumption of peace talks between Ukraine and Russia hurt the yellow metal's appeal as a safe haven. A stronger US dollar and higher yields also weighed on the gold price.

Gold futures fell 0.54% to $1,943.6 by 1:04 a.m. ET. The dollar, which usually moves inversely to gold prices, rose on Monday morning.

US government bond yields rose on Friday, with the benchmark 10-year note hitting near three-year highs as investors continue to weigh high inflation and the Federal Reserve's restrictive stance.

In Asia-Pacific, Japanese Deputy Chief Cabinet Secretary Seiji Kihara said on Sunday that the country's monetary policy must remain loose. While the Bank of Japan did not intervene to defend its target on Friday, it offered to buy unlimited amounts of 10-year Japanese government bonds (JGBs) at 0.25% on Monday morning after the yield on the 10-year JGB rose to a six-year high of 0.245%.

Ukraine and Russia will resume peace talks later this week to resolve the conflict that intensified when Russia invaded Ukraine on February 24. Ukrainian President Volodymyr Zelensky insisted on his country's territorial integrity earlier indicating he was ready for a compromise.

The Central Bank of the Russian Federation, or Bank of Russia, will resume buying gold from banks between March 28 and June 30, paying a fixed price of 5,000 roubles ($48.94) per gram, it was said on Friday.

Holdings in the SPDR Gold Trust rose 0.5 percent on Friday to 1,093.18 tonnes, the highest since the end of February 2021.

In other precious metals, silver fell 1.2% and platinum 0.8%, while palladium rose 1.3% to $2,366.12.