Business News Asia
Gold futures closed lower on Tuesday as investors continued to sell gold as a safe haven in hopes of progress in peace talks between Russia and Ukraine. Meanwhile, investors are keeping an eye on the results of today’s Federal Reserve (Fed) meeting.
- The gold contract was down $31.1, or 1.59%, at $1,929.7 per ounce.
- The silver contract was 14 cents, or 0.55%, to close at $25.158 an ounce.
- The platinum contract was down $49.8, or 4.73 percent, at $1,002.5 an ounce.
- Palladium was down $5.6, or 0.2%, at $2,412 an ounce.
Gold futures closed lower for the third straight day as investors sold safe-haven assets amid hopes for progress in the fourth round of peace talks between Russia and Ukraine.
Russian President Putin sent positive signals this week that peace talks are progressing well. However, as long as the talks continue, the fighting continues, and the Russian army is already around Kyiv.
The focus this week, however, is the outcome of the FOMC meetings to be announced tonight (Asia time).
Speculation about a first rate hike by the Fed caused the gold price to fall yesterday. The Fed is expected to raise interest rates by 25 basis points. Some analysts even assume 50 basis points.
This led to a rise in U.S. Treasury bond yields and put pressure on gold futures. The yield on 10-year U.S. Treasury bonds rose above 2.10%, which increased the opportunity cost of owning gold, as gold is an asset that does not yield interest gains.
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Wednesday, March 16, 2022