Gold prices slid by over 1% as risk appetite improved amid cautious hopes for progress in peace talks between Ukraine and Russia.
Spot gold fell 1.4% to $1,955.43 per ounce by 11:40 a.m. ET, still maintaining a six-month high. US gold futures were also down 1.4%, trading at $1,957.80 per ounce on the Comex.
Meanwhile, benchmark US 10-year Treasury yields saw a slight bump with the anticipation of a Federal Reserve rate hike this week, adding further pressure to the non-yielding bullion.
While there is a risk-on mood across major markets, “I wouldn’t call this (the recent rally) the peak in gold just yet, because this (Ukraine) situation is still uncertain. It’s so fluid,” Julius Baer analyst Carsten Menke told Reuters.