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Monday, March 28, 2022

Gold declines, pressured by strength in the dollar as investors eye Russia-Ukraine developments.

The futures of gold plummeted on Monday as the US dollar strengthened and investors looked forward to progress in the Russia-Ukraine war.

"The Ukrainian war continues to provide a continuous flow of quality buying profits, but another layer of Russian sanctions could anger the Russian leader and that could lead to volatile actions building Russia and further deterioration of gold and silver," analysts say.



The April GC00 gold delivery, -0.82% fell by $ 16.70, or 0.9%, to $, 1937.50 ounce on Comex after a 1.3% rise last week. May the SIK22 silver, -1.52% drop by 50.5 cents, or 2%, to $ 25.11 ounce, after gaining 2.1% last week.

Ukrainian President Volodymyr Zelensky has stated his intention to discuss his country with a view to maintaining neutrality and providing security guarantees in Russia to secure peace "without delay." Zelensky said neutrality, which would keep Ukraine from joining NATO or other military allies, should be included in Ukrainian voters' polls following the withdrawal of Russian troops.


Moscow last week said it was focusing on ensuring the entire eastern Donbas region, which has been partially controlled by Russian-backed separatists since 2014.

"This assurance that the end can be achieved in the bloodshed in Ukraine has reduced the popularity of gold as a destination,"


At the time, the dollar was stronger than its main competitors, with ICE U.S. Dollar Index DXY, 0.49% up 0.5%. A strong dollar can be bad for value-added assets, making them more expensive for users of other currencies.

Treasury yields have risen sharply in the past week, but have slowed slightly in Monday's operations. Higher yields increase the cost of opportunity to hold non-productive goods.

"The big economic vision where the big banks around the world are expected to make a series of rising interest rates over the course of the year will be a lasting hurdle for the gold potential of rising anywhere,"


“However, while the strength of gold seems limited, the Ukrainian war also provides a strong source of precious metal. So while the fact that both sides are involved in the negotiations is a good sign, until those negotiations end the war successfully, investors will not be able to completely liberate the fearsome trade that took place after the first Russian invasion, ”



In other metals trading, May May HGK22, 0.43% was taken from 0.2% to $ 4.71 pound. April platinum PLJ22, -1.87% lost 2.3% to $ 985 ounces and in June palladium PAM22, -6.42% traded at $ 2,214.50 ounce, down 7.5%.