The Magazine for Asian Investors
Gold prices fell Monday morning in Asia as U.S. Treasury bond yields rose. Investors hope that the Fed will raise interest rates this week. In addition, an end to the Ukraine war is in the air, which could calm the markets somewhat.
- Gold futures fell 0.25% to $1980.10 an ounce.
- Palladium futures were down 3.9% at $2,705.18 an ounce.
- Silver futures were down 0.9% at $25.93 an ounce.
- Platinum futures were down 1.9%t at $1,069.00 an ounce.
“One key reason is surging treasury yields. Also market seems to be pricing in on the FOMC meeting on Wednesday at which the Fed may start to kick off the tightening cycle. So, this is a negative factor for gold,”DailyFX Margaret Yang said.
U.S. Deputy Secretary of State Wendy Sherman said Sunday that there may be signs Russia is ready to begin serious talks to end the conflict, even if fighting continues.
“That pressure is beginning to have some effect. We are seeing some signs of a willingness to have real, serious negotiations. But I have to say … so far it appears Vladimir Putin is intent on destroying Ukrain.”
Yields on 10-year U.S. Treasury bonds hit their highest level in nearly a month as the Federal Reserve is expected to raise interest rates and scale back its loose monetary policy.
In the Asia-Pacific region, the Bank of Japan will announce its monetary policy decision on Friday. The Reserve Bank of Australia will publish the minutes of its last meeting on Tuesday. The Bank of England will announce its monetary policy decisions on Thursday.
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Monday, March 14, 2022