The dollar’s rise against most of its major peers and a spike in U.S. bond yields amid rising prospects of aggressive monetary tightening by the Federal Reserve weighed on gold prices on Monday, and pushed the most active gold futures contract to a weak close for a second straight session.
Reports saying Russia and Ukraine are set to resume peace talks in Turkey on Tuesday weighed as well on the safe-haven metal.
The dollar index, which rose to 99.37 in early New York session, gave up some gains subsequently and is hovering around 99.05, up nearly 0.3% from the previous close.
The 10-year US Treasury yield today rose above 2.5%, its highest level since May 2019 as rising inflation risks contributed to expectations of more aggressive Fed tightening.
Gold futures for April ended down by $14.40 or about 0.7% at $1,939.80 an ounce, coming off a low of $1,924.50.
Silver futures for May ended lower by $0.419 at $25.196 an ounce, while Copper futures for May settled at $4.7255 per pound, gaining $0.0270.
Russia and Ukraine are set to restart face-to-face peace negotiations after the former signaled that it may scale down its war and aims to concentrate on eastern Ukraine.
Ukraine President Zelenskyy also said he wants to make a deal with Moscow over Donbas and he is willing to discuss adopting a neutral status too.
The Donbas region has been partly controlled by Russian-backed separatists since 2014.