By Gina Lee
Investing.com – Gold was down on Tuesday morning in Asia, falling below the $2,000 mark hit the day before. The U.S. dollar traded near a multi-month peak, while palladium fell from record highs as talks between Russia and Ukraine to end their conflict showed little result.
Gold futures edged down 0.11% to $1,993.80 by 11:48 PM ET (4:48 AM GMT), after hitting a one-and-a-half year high of $2,002.40 on Monday. The dollar, which normally moves inversely to gold, edged down on Tuesday but held near its 21-month peak hit on Monday,
Holdings of the SPDR Gold Trust (P:GLD) rose 0.8% to 1,062.7 tons on Monday, the highest since March 2021.
The U.S. could go it alone on a potential ban of Russian oil imports, the latest sanctions in response to Russia’s invasion of Ukraine on Feb. 24. Russia responded by warning that oil prices could climb to $300 a barrel and it could close the main gas pipeline to Germany if its oil imports are banned.
Meanwhile, talks between Russia and Ukraine to halt the conflict have made scant progress. Russia’s negotiators said they did not have positive developments to report following the talks, even warning that a ceasefire could not be guaranteed in the next round. The talks “are not easy,” according to negotiator Vladimir Medinsky.
On the central bank front, the European Central Bank will hand down its policy decision on Thursday. Reserve Bank of Australia Governor Philip Lowe will speak on Wednesday and Friday.
In other precious metals, palladium was up 0.3% at $3,005.63 per ounce but was down from Monday’s record high of $3,440.76. Palladium prices have soared 80% in 2022 to all-time highs, with the West’s financial sanctions on Russia potentially disrupting shipments and worsening a supply shortage.
Meanwhile, silver fell 0.7% and platinum fell 0.2% to $1,120.88.
Gold Down, Drops From $2,000 Mark as Russia-Ukraine Conflict Continues
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