Gold Price Falls Off 3-Month High to $1,856.20
Gold fell off a three-month high on Tuesday as Russia took some steps to cool tensions over its threatened invasion of Ukraine, returning some troops stationed on the Ukrainian border to base and indicating it may be more open to a diplomatic solution to prevent war.
Gold for April delivery closed down US$13.20 to US$1,856.20 per ounce. The price of the metal surged to the highest since mid-November on Monday as investors bought the metal as a safe haven as tensions with Russia continued to rise.
But after meetings in Moscow Monday between Russian President Vladimir Putin and German Chancellor Olaf Scholz, Russia said it is returning some troops station on the Ukrainian border to base and may be more open to diplomatic talks.
However, NATO Secretary-general Jens Stoltenberg told reporters on Tuesday that the alliance has yet to see any significant de-escalation from Moscow, according to a Guardian report.
“Investors clearly still feel a considerable need for safety against the backdrop of a possible escalation of the Ukraine crisis,” Commerzbank analyst Daniel Briesemann said in a note.
The US dollar was lower, making gold more affordable for international buyers. The ICE dollar index was last seen down 0.37 points to 96.00. Read: FOREX: US Dollar Slides from Three-Month High
Bond yields were higher, bearish for gold since it offers no interest, with the US 10-year note last seen paying 2.04%, up 5.1 basis points. # Gold Price Falls Off 3-Month High to $1,856.20
