Title: Gold Down, Dollar Strengthens as Russia’s Invasion of Ukraine Intensifies
Mar 01, 2022 10:46PM ET
Gold prices eased in Asia on Wednesday morning on a strengthening US dollar.
Gold futures dropped 0.26% to $1,938.75 by 10:39 a.m. ET. The yellow metal surged about 6.5% in February, touching an 18-month high of $1,973.96 last week. The dollar, which typically moves in reverse to the price of gold, gained 0.04%.
With Russia's invasion of Ukraine heating up, investors are rushing into safe-haven holdings. Russian commanders warned Kyiv residents to flee their homes and Russian commanders stepped up bombardment of Ukrainian cities.
The benchmark US 10-year yield jumped to 1.7548% from 1.711% late on Tuesday.
Investors are worried about aggressive rate hikes by the US Federal Reserve in the upcoming months amid stresses in Ukraine and increasing inflation.
Investors are also awaiting Fed Chairman Jerome Powell's statement to the US Congress on Wednesday and Thursday for further clues on rate hikes.
The SPDR Gold Fund, the world's biggest gold exchange-traded fund, climbed 1.3% to 1,042.38 tonnes on Tuesday, its strongest level since July 2021.
In other precious metals. Palladium climbed 1.2% after hitting a seven-month high of $2,722.79 on Tuesday. Russia is the major palladium producer, with Moscow-based Nornickel supplying 40% of the world's mine production of the metal last year.
Silver dropped 0.9%, while platinum advanced 0.1%.