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As the war in Ukraine prolongs, the attractiveness of gold diminishes

Dow Jones Newswires reported that gold prices fell in early Asian trade as expectations for progress in negotiations between Russia and Ukraine made precious metal safe shelters less attractive.

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Russian President Vladimir Putin said there is a “certain positive change” in negotiations with Ukraine, Oanda says.

Putin’s comments are likely to expect market participants to expect the ceasefire negotiations to go in the right direction, but withdrawal of gold should be limited as concerns about economic growth are unlikely to disappear soon. Oanda added.

Metal prices hit record highs, consumer goods costs rise

According to the report, spot gold fell 0.8% to $ 1,972.78 per ounce.

India’s Sunday night cash dealers have been forced to offer the biggest discounts in six years this week to prolong their customers due to soaring domestic prices, according to Reuters, and are part of Asia’s top hubs. People sold their bullions and attended the rally.

Dow Jones Newswires reported that gold prices fell in early Asian trade as expectations for progress in negotiations between Russia and Ukraine made precious metal safe shelters less attractive.

Earlier this week, global benchmark spot gold prices rose to nearly a record high of $ 2,020.47 as investors sought to evacuate the uncertainties caused by the Ukraine crisis.

India, traditionally the largest gold consumer after China, has seen local gold prices jump to 55,558 rupees per 10 grams, not far from the record high of 56,191 rupees hit in 2020.

Soaring prices have overwhelmed demand, with dealers offering $ 77 a ounce discount to $ 27 last week over official domestic prices (including 10.75% imports and 3% sales tax). I urged you.

ASIAN TRADING AMIDINVESTOR PROFIT-TAKING Gold Falls

“Demand is less than 10% of normal,” said Harshad Ajmera, a gold wholesaler in Kolkata.

Mumbai-based private bank bullion dealers said some consumers are selling old jewelery to take advantage of high prices.

In China, discounts have increased the global benchmark rate from $ 2 to $ 4 per ounce, while last week’s premium ranged from $ 0.8 to $ 2.

Independent analyst Ross Norman said China’s demand was “clearly kneeling” while gold prices were “fast and fast.”

Selling slowed as prices fell over the weekend, but most buyers waited for a bigger fall.

In Hong Kong, gold was sold at a $ 3 discount.

Most buyers were waiting for a significant drop, said Peter Fung, head of trading at Wing Fung Precious Metals, although selling slowed as prices fell over the weekend.

Meanwhile, Singapore saw a premium of $ 1-1.80 per ounce, compared to $ 1.80 to $ 2.50 last week.

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“We’re very busy at retail stores, with gold over $ 2,000 this week,” said Vincent Thai, sales manager at dealer Silver Bullion, citing high inflation as an incentive to deposit gold in banks.

-Reuters contributed to this report.

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