Gold re-extinguished gains by falling below the $ 2,000 price level as U.S. treasury yields rose while investors chose riskier assets amid declining crude oil prices making the yellow metal less attractive.
The recorded decline in gold prices can be attributed to Ukraine’s willingness to compromise in its negotiations with Russia which is seen to help reduce geopolitical conflicts.
The precious metal retreated further from a 19-month high with a 0.8% decline to around $ 1,795 an ounce after declining about 3% in the previous session. This is also the biggest daily fall since January 2021.
The bond yield benchmark continued to show improvement for the third consecutive session with investors now awaiting the release of US inflation data in the New York session.
With an expected increase of 7.8% in February, the release of this data will have an impact on the movement of the yellow gold metal which is considered an inflation hedge.
Meanwhile, several OPEC+ member states such as Iraq have offered to increase production to ease concerns over tight oil supplies. This in turn pushes oil prices to fall significantly and pushes investors to turn to riskier assets.
