Title: Gold Down, Tumbles from $2,000 Mark as Dollar Remains Near Two-Year High
Apr 19, 2022 12:04AM ET
Gold prices slipped in Asia Tuesday morning after hitting $2,000 in the previous session. The dollar was near a two-year high, diminishing the yellow metal's appeal as a safe haven.
Gold futures were up 0.24% at $1,981.70 per ounce at 11:59 p.m. ET, having earlier risen to $1,998.10 per ounce as the Ukraine conflict raged on and inflation fears grew. But gold gave back most of Monday's gains as the dollar and 10-year U.S. Treasury bond yields rallied.
"The $2,000 per ounce level is a pretty critical level, and the fact that gold closed virtually unchanged on the day means there is a slight hesitation to go up immediately," Matt Simpson, senior market analyst at City Index, told Reuters.
"Gold has the opportunity to overcome U.S. dollar strength and break through the $2,000 level, possibly in the next week or so."
The dollar, which normally moves inversely to gold, rose on Tuesday, reaching its highest level since April 2020.
The Federal Reserve of the United States is also expected to raise interest rates at its next meeting, while 10-year U.S. Treasury bond yields have fallen from recent highs.
Innes, managing partner at SPI Asset Management, told Reuters: "Now that we've tested the $2,000 level, this will be a bit of an eye-opener for traditional gold buyers and momentum players, as concerns about the recession in the U.S. will also boost gold in the medium term."
In Asia-Pacific, the Reserve Bank of Australia released the minutes of its latest meeting later in the day.
In other precious metals, silver and palladium slipped 0.1%, while platinum gained 1%.