On Tuesday, bullion prices traded lower as market participants kept an eye close to the resume of Russia-Ukraine peace talks later this day.
Gold futures for the April 22 delivery slashed 1.35% or 26.25 points to $1,913.50 per ounce. The yellow metal benchmark followed Monday’s drop of 0.74% to $1,939.80 per ounce.
At the same time, spot gold slipped 0.51% or 9.75 points to $1,913.07 per ounce. It extended a downturn of 1.75% to $1,923.20 per ounce yesterday.
Accordingly, traders looked forward to the resume of the face-to-face peace talks of Ukraine and Russia in Istanbul, Turkey.
Kyiv mentioned that its top objective at the meeting was to secure a ceasefire without compromising its sovereignty.
President Volodymyr Zelensky stated the country is ready to declare neutrality if the Kremlin withdraws its troops.
He is also willing to abandon his drive to join the North Atlantic Treaty Organization if it receives security guarantees.
Moscow’s invasion of Ukrainian territory has killed an estimated 20,000 people. The crisis has forced more than 10.00 million from their homes.
Eventually, this includes more than 3.80 million who have fled the country. The conflict also triggered an unprecedented range of western economic sanctions on Russia.
Earlier diplomatic talks, both by video and in person, failed to make progress towards a ceasefire.
Meanwhile, the dollar, which usually moves inversely to gold, also inched down today.
The USD index dwindled 0.41% or 0.40 points to the 98.69 mark. It is still firm at a three-week high hit in the previous session.
Nevertheless, the benchmark US 10-year note was also near three-year highs. It edged up 0.017 points to the 2.496% level, increasing the opportunity cost of holding non-yielding bullion.
China’s gold imports ease; precious metals slip
Meanwhile, in Asia-Pacific, China’s net gold imports through Hong Kong skidded 13.70%. It is the lowest level in nearly a year due to the Lunar New Year holidays and high prices.
Subsequently, financial hub Shanghai imposed a two-stage, nine-day lockdown, halting most operations in the region.
On Monday, the city reported a record 4,381 asymptomatic and 96 symptomatic COVID-19 cases. Markets anticipated a damp demand in line with this surge of infections.
Moreover, two gold industry associations said they would create a database of gold bars. This effort aims to prevent trade in counterfeit metal and allow bullion buyers to trace its origin.
Likewise, palladium futures shed 1.12% or 25.13 points to $2,217.27 per ounce. Then, platinum contracts lowered 1.57% or 15.65 points to $975.50 per ounce.
At the same time, silver futures lost 1.79% or 0.45 points to $24.75 per ounce.
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