Gold prices slid to the lowest in a week amid the ongoing conflict in Ukraine as a new round of sanctions are expected to be imposed on Russia, while oil traders await economic reports from the US.
The greenback strengthened to a seven-month high against 10 major currencies as the market are expecting the US jobs report along with speeches from the Federal Reserve (Fed) presidents’ are expected to take place later this week after the Fed Chair Janet Yellen said that the improving economy could support the case for the Federal Reserve to increase interest rates sooner than expected.
The Dollar Index edged 0.17% higher at 82.89 at the time of writing.
Gold futures for December delivery fell 0.77% to trade at $1,277.70 on the Comex in New York at the time of writing, while silver futures rose 0.19% to $19.435.
Platinum slipped 0.2% lower to $1,420.88 an ounce, while Palladium declined 0.5% to $904.30 an ounce. Prices jumped by 26% this year after the five-month mine strike in South Africa ended in June.
Free Reports:
In Ukraine, the conflict continues to escalate as Kiev accuses Russia for the open military invasion into its eastern regions, while Russia denies any involvement in the crises. The US President Barack Obama is expected to arrive in Eastern Europe to deliver reassurance to NATO members. NATO is planning to create a response force of thousands of troops to protect Easter European members against the conflict.
The German Chancellor Angela Merkel said European will not accept Russia’s military invasion into Ukraine. EU officials have threatened Russia with further sanctions if the conflict continues. Russia has hit back the previous sanctions by banning imports from the countries that supported the sanctions.
Last year, gold fell 28% on speculations that the US Federal Reserve would trim its stimulus. This year, gold prices jumped 6.2%, partly due to the geopolitical tensions.
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