Spot gold continued to come under pressure on Tuesday, with market participants looking forward to the Russian-Ukrainian peace talks that began later today, despite doubts about a major breakthrough in Ukraine and the US, despite a fall in the dollar index.
16:02 Beijing time, spot gold fell 0.15% to $1919.74 / oz; COMEX gold contract fell 1.04% to $1919.6 / oz; and the dollar index fell 0.15% to 98.988.
Ukraine said the primary goal of its first face-to-face talks with Russia in more than two weeks in Turkey on Tuesday was to secure a ceasefire, although both Ukraine and the United States expressed doubts about a major breakthrough.
Ukraine's Deputy Prime Minister Iryna Vereshchuk says Ukraine hopes to open three humanitarian corridors on Tuesday to evacuate civilians from besieged towns. She said this would include trying to establish a safe passage for people to leave the besieged southern port city of Mariupol in private cars.
"Gold has resistance at $1965 and $1975 an ounce," Jeffrey Halley, a senior analyst at OANDA, said in a report. The support positions are $1917 and $1910. "
Stephen Innes, managing partner of SPI Asset Management, said that given the current inflation anxiety in the market, the focus is on the Fed's further policy tightening. "since the Fed's future policy depends entirely on the performance of economic data, I think a strong employment data in March may boost the dollar and cause yields to rise slightly, which will obviously have a considerable negative impact on gold, but I think before the war premium evaporates completely. There will be no real rout. "
U.S. Deputy Treasury Secretary Wally Adeyemo said Tuesday that the United States and its allies plan to impose new sanctions on more important sectors of the Russian economy, including the supply chain, that helped sustain its invasion of Ukraine.
In response to Russia's invasion of Ukraine, the United States and other Western countries imposed extensive economic sanctions on Russia, effectively cutting off access to dollar transactions by Russia's central bank, sovereign wealth funds, banks and certain individuals.
"as the dollar becomes a weapon in the new era of sanctions, the end result will be a decline in the status of the dollar," a team of BofA analysts led by Michael Hartnett said in a report on Thursday.
