Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold retreated 1.2% to close under $1,961 as hope about new Ukraine-Russia negotiations dented safe-haven demand. It was the metal's lowest finish in six sessions.

A fourth round of talks between Russian and Ukrainian officials began today, fueling optimism that the brutal war might be ebbing. The session ended with no agreement and will resume tomorrow.

Meanwhile, Russia intensified shelling of Ukrainian cities over the weekend and bombed a training camp on the border with Poland, a NATO member.

Benchmark 10-year Treasury yields rose above 2.1% as investors shifted away from safe-havens. Rising inflation worries also drove yields higher after The Fed released data showing US consumers expect inflation to remain above 6% one year from now.

While rising prices typically support gold as an inflation hedge, rising yields pressure the metal by increasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Fueled by optimism about the Ukraine talks, all three major US stock indexes began the day with gains only slip back into losses late in the session. The Dow lost 0.2% while the S&P 500 dropped 1% and the Nasdaq 2.2%.

Falling oil prices also took a toll on the gold price. US benchmark WTI crude tumbled 7.2% to under $101.50 per barrel after the US signaled its willingness to lift sanctions against Venezuelan oil to make up for supply deficits caused by the war. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were also lower, with silver and platinum losing 3.3% each while palladium shed 13.6% on speculation that Russian supplies may return to the market if peace talks succeed.

At the Comex close: April gold lost $24.20 to $1,960.80; May silver dropped 86 cents to $25.30; April platinum shed $36.30 to $1,052.30; and June palladium plunged $379.20 to $2,417.60 an ounce.