Gold eases from key US$2,000 mark as firm dollar dulls appeal

[BENGALURU] Gold prices slid from the key US$2,000-per-ounce mark on Tuesday (Mar 8), as the US dollar held firm near a multi-month peak, while palladium eased from record highs after investors took a breather as Russia-Ukraine talks hardly advanced.

Spot gold was down 0.5 per cent at US$1,987.86 per ounce, as of 2.23 am GMT, after scaling a 1-1/2-year peak of US$2,002.40 on Monday. US gold futures were down 0.2 per cent at US$1,992.90.

Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.8 per cent to 1,062.7 tonnes on Monday - their highest since March 2021.

Palladium was up 0.3 per cent at US$3,005.63 per ounce but eased from an all-time high of US$3,440.76 scaled on Monday.

Russia accounts for 40 per cent of global production of the auto-catalyst metal, used by automakers in catalytic converters to curb emissions.

Palladium prices have rocketed 80 per cent this year to all-time highs as financial sanctions on Russia could disrupt shipments and worsen a supply shortage.

Russia warned that oil prices could surge to US$300 a barrel and it might close the main gas pipeline to Germany if the West halts oil imports over the invasion of Ukraine as peace talks on Monday made little progress.

The dollar index held close to a 21-month peak hit on Monday, making gold less attractive for holders of other currencies, following news of a potential oil import ban on Russia.

Russian negotiators said they did not have positive developments to report following talks with Ukraine and warned not to expect the next round to bring a final result. The talks "are not easy", negotiator Vladimir Medinsky said.

Among other metals, spot silver fell 0.7 per cent to US$25.47 per ounce, while platinum fell 0.2 per cent to US$1,120.88. REUTERS