Gold falls on Russia-Ukraine talks, Fed rate hike announcement expected

Gold extended losses on Tuesday as ceasefire talks between Russia and Ukraine reduced demand for safe-haven assets, while bets the US Federal Reserve will raise rates for the first time in three years added pressure to the metal.

The gold Spot fell 1.2% to $1,928.58 an ounce by 1032 GMT, after hitting its lowest level since March 3 at $1,924.56 an ounce earlier in the session.

gold futures from United States They fell 1.5% to US$1,930.70 per ounce.

“A minimal hope that Ukraine-Russia talks will somehow lead to a de-escalation has weighed on gold demand,” said ActivTrades Senior Analyst Ricardo Evangelista.

Although gold is experiencing a bit of calm, the situation of Ukraine it is still developing and market volatility and uncertainty are likely to remain quite high, Evangelista added.

Gold prices are expected to fall for the third consecutive session on Tuesday, which could mark their longest losing streak since late January.

At the macroeconomic level, analysts expect the fed raise borrowing costs by a quarter of a percentage point at the end of its two-day meeting on Wednesday.

Among other precious metals, spot palladium added 1.7% to $2,428.72 an ounce, after its weakest session in two years on Monday as supply fears eased.

Spot silver fell 1.8% to $24.58 an ounce, while platinum fell 1.8% to $1,012.04 an ounce.