Title: Gold Down, U.S. Treasury Yields Up as Investors Await Interest Rate Hike

Mar 14, 2022 01:02AM ET

By: AnalysisWatch

The gold price was lower in Asia on Monday morning. US Treasury yields increased in the anticipation of a rate hike in the US, while expectations of an eventual end to the dispute in Ukraine added further pressure on the yellow metal as a safe haven.

Gold futures dropped 0.25 percent to $1980.10 by 12:49 AM ET.

US Deputy Secretary of State Wendy Sherman said on Sunday that there may be indications that Russia is ready to start substantial discussions to end the dispute, even if combat resumes.

Yields on 10-year US government bonds rose to a near one-month high as the US Federal Reserve is broadly anticipated to hike interest rates when it makes its policy decision later this week.

In Asia-Pacific, the Bank of Japan will report its monetary policy decisions on Friday, while the Reserve Bank of Australia will publish the minutes of its latest meeting on Tuesday.

The Bank of England will also be releasing its monetary policy statement on Thursday.

In other precious metals, palladium declined 3.9% to $2,705.18 per ounce. It had reached a record peak of $3,440.76 the previous week as worries about supply disruptions from major producer Russia lingered.

Russian mining giant Nornickel succeeded in securing alternative routes for its palladium supplies, but logistical problems remain. Silver dropped 0.9 % and platinum was down 1.9 %.