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Title: Gold Down, U.S. Yields Up as Investors Look to Fed Policy Decision

Mar 15, 2022 01:03AM ET

By: AnalysisWatch

Gold prices slipped in Asia on Tuesday morning, falling to their lowest level in more than a week. US Treasury yields rose ahead of the Federal Reserve's decision, and hopes for progress in talks between Ukraine and Russia further dampened the yellow metal's appeal as a safe haven.

Gold futures fell 1.01% to $1,940.95 an ounce by 12:57 PM ET, having earlier touched $1,940 an ounce, the lowest since March 4.

US government bond yields rose to a two-and-a-half-year high on Monday as investors awaited the Fed's decision, which will be announced on Wednesday. The central bank is expected to raise interest rates for the first time in three years.

The Bank of England will announce its own monetary policy decision on Thursday. At a conference on the same day, European Central Bank President Christine Lagarde, Executive Board member Isabel Schnabel, ECB Governing Council member Ignazio Visco, and Chief Economist Philip Lane will speak at a conference on the same day. The Bank of Japan will announce its monetary policy decisions on Friday.

Russia and Ukraine ended the fourth round of talks on Monday with little progress in ending the conflict that began with Russia's invasion of Ukraine on February 24. The talks are due to resume on Tuesday.

In other precious metals, palladium fell 1% to $2,363.06 per ounce after falling more than 15% the previous session as supply concerns eased. The largest shareholder in Russian mining giant Nornickel, Vladimir Potanin, told Russian broadcaster RBC on Saturday that the company had managed to find alternative routes for its palladium supplies. However, supply shortages are expected to continue.

Silver fell 0.4% and platinum slipped 0.1%.

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