Business News Asia
Gold futures fell to a nearly two-week low on Tuesday (March 28) following reports of progress in peace talks between Russia and Ukraine.
- The gold futures fell $26.7, or 1.37%, at $1,918 an ounce.
- Silver was down 46 cents, or 1.83%, at $24.736 an ounce.
- The platinum contract was down $15, or 1.51%, at $978.8 an ounce.
- Palladium fell $129.70, or 5.8%, at $2,112.70 an ounce.
Investors are selling gold as a safe haven after Turkish Foreign Minister Mevlut Cavusoglu said that yesterday’s peace talks between Russia and Ukraine in Istanbul made the most progress since negotiations between the two sides began.
The Russian news agency Tass, citing the Russian Defense Ministry, reports that Russia will “drastically reduce” its military operations around the Ukrainian capital Kyiv as well as around Chernihiv. This is expected to strengthen trust between Russia and Ukraine and facilitate the next peace talks between the two sides.
The Ukrainian peace negotiator presented an offer for neutral status in talks with Russia yesterday. In return, Ukraine is to guarantee its security. The proposal states that Ukraine will not enter into a military alliance with any country and will not allow foreigners to establish military bases in the country.
In addition, strong U.S. economic data is another factor prompting investors to reduce their holdings of safe assets.
A survey by the Conference Board economic research firm showed that the U.S. consumer confidence index rose to 107.2 in March from 105.7 in February.
The U.S. Consumer Confidence Index is a survey of consumers’ outlook, their assessment of current and next six months’ economic conditions, personal finances, and employment.
A survey, conducted by S&P CoreLogic Case Schiller, found that the nationwide home price index in the United States rose 19.2% in January, up from 18.9% in December.
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