Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slid 0.7% to close under $1,940 as equities rose Ukraine peace talks and the dollar jumped on interest rate prospects, dulling demand for alternative assets.

Representatives from Ukraine and Russia will meet face to face for the time in two weeks, offering faint hope for an end to Russia's brutal invasion. Ukraine President Volodymyr Zelensky said he is "ready" to discuss a "neutral" Ukraine, something Russia requires as a minimum concession to keep NATO at bay.

Wall Street ran with the meager optimism, lifting the Dow and S&P higher by 0.3% and 0.7%, respectively, while Nasdaq jumped 1.3% behind surging shares of Tesla. Banking shares were a drag among Blue Chips after Morgan Stanley downgraded US banks on escalating risks and higher interest rates.

The dollar added 0.4% against major rivals on growing expectations that the Fed will raise rates by a half-point in May and June, followed by quarter-point increases at every remaining FOMC meeting this year. The yen fell to a six-year low after the Bank of Japan defended its decision to leave its rates at 0.25% cap on yields.

Rising US interest rates strengthen the dollar by attracting Forex investment seeking higher yield. A stronger dollar, in turn, pressures gold and other commodities by making them more expensive in other currencies, limiting overseas demand.

The other precious metals were also lower, with silver dropping 1.6% while platinum slid 1.7% and palladium lost 6.3%.

At the Comex close: April slid $14.40 to $1,939.80; May silver fell 42 cents to $25.20; April platinum dropped $17.40 to $991.10; and June palladium shed $151.90 to $2,242.40 an ounce.