Gold prices dip as Russia-Ukraine ceasefire talks underway

[BENGALURU] Gold prices eased on Tuesday (Mar 1) after strong performances in the past few sessions, as Russian and Ukrainian officials began ceasefire talks and Western countries ramped up sanctions against Moscow, dampening the demand for safe-haven assets.

Spot gold was down 0.3 per cent at US$1,902.15 per ounce, as of 1.49 am GMT, after a more than 1 per cent gain in the previous session.

US gold futures rose 0.2 per cent to US$1,904.80.

Ceasefire talks between Russian and Ukrainian officials began on the Belarusian border as Russia faced deepening economic isolation 4 days after invading Ukraine.

Russian President Vladimir Putin showed no signs of stopping an invasion of Ukraine, where fierce fighting and bombardment have killed dozens and sparked a refugee crisis.

Russia's invasion of Ukraine is seen as a gamechanger and demand for safe-haven assets is expected to remain stable.

Gold, often used a safe-store of value during times of political and financial uncertainty, has risen about 6.5 per cent in February, having soared to an 18-month high of US$1,973.96 last week.

Russia's central bank more than doubled its key policy rate on Monday and introduced some capital controls, but its governor said sanctions had stopped it selling foreign currency to prop up the rouble.

A stream of Western companies pulling out of Russia is expected to grow, as corporations and investors across industries follow the lead of energy firms BP and Shell, which abandoned multi-billion-dollar positions after the invasion of Ukraine.

Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.2 per cent to 1,029.02 tonnes on Monday.

Auto-catalyst metal palladium rose 0.2 per cent to US$2,494.00, after reaching its highest level since July 2021 at US$2,711.18 last week.

Spot silver fell 0.5 per cent to US$24.31 per ounce, while platinum shed 0.2 per cent to US$1,041.23. REUTERS