Gold dips as markets take stock of Ukraine crisis

“It’s not simply a case of the West turning a switch and banning Russian imports. It’s going to take a lot longer than that. So, markets are readjusting, absorbing all the information,” said Matt Simpson, a senior market analyst at City Index.

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New York: Gold slid from the key $2,000-mark on Tuesday as investors paused to reassess the Russia-Ukraine conflict after talks hardly advanced, with a strong U.S. dollar weighing further on the safe-haven metal.

Spot gold was down 0.5% at $1,988.78 per ounce by 0447 GMT, after scaling a 1-1/2-year peak of $2,002.40 on Monday. U.S. gold futures were down 0.2% to $1,992.40.

Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.8% to 1,062.7 tonnes on Monday — their highest since March 2021.

“It’s not simply a case of the West turning a switch and banning Russian imports. It’s going to take a lot longer than that. So, markets are readjusting, absorbing all the information,” said Matt Simpson, a senior market analyst at City Index.

“There’s a little bit less demand for gold, but at the same time it’s not really giving back its gains.”

Russian negotiators said they did not have positive developments to report following talks with Ukraine.

The dollar index held close to a 21-month peak hit on Monday, making gold less attractive for holders of other currencies, following news of a potential U.S. oil import ban on Russia.

Spot gold may retest a resistance at $1,999 per ounce, a break above could lead to a gain at $2,028, according to Reuters’ technical analyst Wang Tao.

Palladium was up 0.7% to $3,019.22 per ounce, but was off an all-time high of $3,440.76 scaled on Monday.

The auto-catalyst metal prices have rocketed 80% this year to all-time highs as financial sanctions on Russia could disrupt shipments and worsen a supply shortage.

Among other metals, spot silver fell 0.7% to $25.47 per ounce, while platinum rose 0.7% to $1,130.78.

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