Gold futures fell Monday for a second straight session as the U.S. dollar strengthened and investors eyed developments in the Russia-Ukraine war.
“The war in Ukraine continues to provide a steady flow of flight to quality buying interest, but another layer of sanctions on Russia likely infuriates the Russian leader and that could lead to more volatile actions from Russia and more volatility in gold and silver,” analysts at Zaner wrote in Monday’s commentary.
Read: What traders think of U.S.-led efforts to black gold transactions by Russia’s central bank
Gold for April delivery
GC00
fell $14.40, or 0.7%, to settle at $1,939.80 an ounce on Comex after climbing by 1.3% last week. May silver
SIK22
lost 42 cents, or 1.6%, to end at $25.196 an ounce, after gaining 2.1% last week.
Ukrainian President Volodymyr Zelensky said he was willing to discuss his country adopting a neutral status and offer security guarantees to Russia to secure peace “without delay.” Zelensky said that neutrality, which would keep Ukraine out of NATO or other military alliances, should be put to Ukrainian voters in a referendum after Russian troops withdraw.
Moscow last week said its focus was now on securing the entire eastern Donbas region, which has been partially controlled by Russia-backed separatists since 2014.
“This positivity that an end can be found to the bloodshed in Ukraine has reduced gold’s appeal as a haven asset,” said Rupert Rowling, market analyst at Kinesis Money, in a note.
Meanwhile, the dollar was stronger versus major rivals, with the ICE U.S. Dollar Index
DXY
up 0.3%. A stronger dollar can be a negative for commodities priced in the currency, making them more expensive to users of other currencies.
“The dollar has generally been the primary safe haven in recent weeks, but…
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