Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 1.6% to close under $1,930 as ongoing talks between Russia and Ukraine combined with plunging oil prices to stoke risk appetite and stifle demand for safe havens. It was the metal's lowest finish in nearly two weeks.

Ukraine and Russian negotiators continued discussing a ceasefire and withdrawal of troops while leaders from nearby EU nations entered Kyiv to show support for the Ukrainian government. The unified front presented by Western governments, along the Russian military's inability to take a single major city in Ukraine so far, has raised hopes for a solution to the three-week war.

Wall Street surged as risk appetite returned to the markets, with the Dow and S&P 500 adding 1.8% and 2.1%, respectively, while the Nasdaq jumped 3%.

Benchmark 10-year Treasury yields rose above 2.1% as investors shed bonds for stocks. Higher yields pressure gold by increasing the opportunity cost for holding it.

Plunging oil prices also fueled sentiment after US benchmark WTI crude tumbled another 7.6% to $95 per barrel. Only five days after spiking above $123, its highest finish since 2008, oil has lost 22%, putting it into technical bear-market territory.

Decreased demand from China because of Covid lockdowns and the possible lifting of Iranian and Venezuelan sanctions on oil to offset supply losses from Russia have helped drive down prices. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

US wholesale inflation rose less than expected in February, with the Producer Price Index increasing 0.8% to keep the 12-month rate unchanged at 10%.

The drop in oil prices and moderate PPI take some pressure off the Fed as it meets this week to chart monetary policy. A quarter-point rate hike is all but certain. Investors will keep a sharp eye on the post-meeting statement for signals of increasing dovishness from the central bank because of the Ukraine war.

The other precious metals were also lower, with silver sliding 0.6% while platinum lost 4.7% and palladium dipped 0.2%.

At the Comex close: April gold dropped $31.10 to $1,929.70; May silver slid 14 cents to $25.16; April platinum fell $49.80 to $1,002.50; and June palladium dipped $5.60 to $2,412 an ounce.