Gold slips as firm Treasury yields, risk appetite dent appeal

Shafaq News / Gold prices fell on Monday as U.S. rate-hike expectations lifted Treasury yields to their highest in a month, while hopes of progress in Russia-Ukraine peace talks further assuaged bullion's safe-haven appeal.

Gold is highly sensitive to rising U.S. interest rates, which increase the opportunity cost of holding non-yielding bullion.

Spot gold was down 0.5% at $1,976.31 per ounce by 0457 GMT. U.S. gold futures shed 0.3% to $1,979.40.

Benchmark U.S. 10-year Treasury yields rose to a near one-month high as the U.S. Federal Reserve is widely expected to raise interest rates by a quarter of a percentage point at a two-day event later this week.

Pressuring gold's safe-haven demand, global shares advanced on hopes of a respite in the Ukraine crisis even as fighting raged on.

Palladium , used by automakers in catalytic converters to curb emissions, slumped 4.1% to $2,700.75 per ounce. The metal hit a record high of $3,440.76 last week, driven by fears of supply disruptions from top producer Russia.

Among other metals, spot silver shed 0.4% to $25.69 per ounce, while platinum dropped 1.8% to $1,060.45.

(Reuters)