Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold retreated 2.7% to close under $1,988 as falling oil prices and hopeful signals about the Ukraine crisis reawakened risk appetite, prompting traders to take some profits from the metal's five-day rally.

Ukraine President Volodymyr Zelensky said today that he has "cooled down" about Ukraine joining NATO, something that Russia has tried to prevent though intimidation and invasion. At the same time, a spokesperson for Russia's foreign ministry said Moscow would prefer to establish Ukraine's neutrality through diplomacy, potentially opening the door to a ceasefire.

Wall Street ran with the suggestion, however tenuous, that the war might end. The Dow and Global Dow jumped 2.4% and 2.7%, respectively, while the S&P 500 added 3% and the Nasdaq nearly 4%.

Falling oil prices also fueled risk appetite, with US benchmark WTI falling more than 11% to less than $110 per barrel after OPEC producers signaled their willingness to increase production to offset the ban of Russian oil. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

Benchmark 10-year Treasury yields pushed up to 1.95% before slipping slightly as investors shifted from safe-havens to risk assets. Higher yields weigh on gold by increasing the opportunity cost for holding it instead of bonds.

Gold's slide was backstopped by a sharply lower dollar, which lost 1.1% against major rivals on Forex traders piled into the euro and other riskier currencies. A falling dollar typically buoys gold by making it cheaper in other currencies.

The other precious metals were also lower, with silver and platinum losing 4% each while palladium slipped 0.6%.

At the Comex close: April gold dropped $55.10 to $1,988.20; May silver lost $1.08 to $25.82; April platinum fell $45.60 to $1,107.60; and June palladium slipped $18.70 to $2,949.80 an ounce.