On Wednesday, March 30, international gold prices strengthened, supported by a weaker dollar. Despite signs of progress in the Russian-Ukrainian peace talks, doubts have been expressed about Russia's commitment to reduce military action.
15:41 Beijing time, spot gold rose 0.15% to $1922.11 / oz; COMEX gold contract rose 0.47% to $1927.0 / oz; and the dollar index fell 0.42% to 98.018.
"the [weak] dollar provides some support for gold," said Matt Simpson, a senior market analyst at City Index. Bond prices rebounded from a key support level yesterday, helping to push yields lower, despite a widespread rally in stocks fuelled by so-called risk appetite. "
Russia promised on Tuesday to cut its military operations in the Ukrainian capital and northern regions, while Ukraine offered to take a neutral stance, in a confidence-building step that is an early sign of progress in the peace talks.
But Ukraine is sceptical about Russia's commitment in the negotiations to reduce military operations in Kiev and another city, while some Western countries expect Moscow to step up its offensive in other parts of Ukraine.
The United States and its allies plan to impose new sanctions on more sectors of the Russian economy. As a result, investors remain cautious about the real intentions behind Russia's commitment to cut "military action", which also provides new support for gold prices.
Canadian mining company Kinross Gold Corp (K.TO) said on Tuesday that it was in talks to sell its assets in Russia. Earlier this month, Kinross said it would suspend its operations in Russia, including the Udinsk development project and the Kupol mine.
Several other companies with ties to Russia are taking steps to comply with comprehensive western sanctions against Russia. RIO.L, the mining company, also said it would cut all ties with Russian companies, while mining company GLEN.L sold its stake in Russian oil company RNFT.MM in February.
