Title: Gold Down, Dollar Set for Best Month Since 2015
Apr 27, 2022 12:51AM ET
The gold price weakened on Wednesday morning in Asia. The dollar consolidated at its highest level in more than two years, depressing demand for the green-backed yellow metal.
Gold futures fell 0.36% to $1,897.30 an ounce by 12:46 AM ET.
"So $1,900 is clearly an important level for today's trading session. Longer term, it doesn't look ideal right now with the U.S. dollar at a 25-month high, "Matt Simpson, senior market analyst at City Index, told Reuters.
The dollar, which normally moves inversely to gold, rose slightly on Wednesday. It was near its highest level since the COVID-19 pandemic began and was on track for its best month since 2015.
Meanwhile, Russia on Wednesday halted gas supplies to Poland under the Yamal contract, according to data from the European Union Gas Transmission Operators Network. The latest move underscores the rift between the West and Russia over the war in Ukraine, which was sparked by the Russian invasion on Feb. 24.
Headlines from Russia supported gold prices Tuesday as investors sought safe havens, but the war in Ukraine hasn't been as important lately as it was a few weeks ago and is unlikely to last through the week, Simpson said.
Asian equities followed a global selloff in early trading as rising fears about the global economy prompted investors to pull back from riskier assets in favor of safe havens such as the dollar and government bonds.
In other precious metals, silver rose 0.1%, platinum fell 0.1%, and palladium rose 0.6% to $2,198.48.