Gold declines to 30-month low, dollar near 20-year high

Gold declines to 30-month low, dollar near 20-year high

Gold declines to 30-month low, dollar near 20-year high

During the previous session, gold fell to its lowest level since mid-February 2022 in Asia on Tuesday morning. The chances of a rate hike by the US Federal Reserve, as well as a dollar approaching 20-year highs, dampened the appeal of the yellow metal.

The price of gold futures fell 0.14 percent. Higher interest rates will put direct pressure on gold, while a stronger US dollar will put indirect pressure on it. The dollar, which usually goes in the opposite direction to gold, was also lower, but it was still at 20-year highs. For the first time, benchmark 10-year Treasury yields surpassed 3%.

The Federal Open Market Committee will meet, and the central bank will raise interest rates when it announces its policy decision. 

Throughout the week, other central banks will announce their policy decisions. As part of this decision, the Reserve Bank of Australia raised its interest rate to 0.35 percent.

The European Union is prepared to impose sanctions on Russian oil sales, the latest action taken in response to Russia’s invasion of Ukraine. The EU’s decision came after Germany, Russia’s largest energy consumer, changed its mind, potentially depriving Moscow of a huge revenue stream within days.

Russian soldiers fired rockets at the surrounded steel factory in Mariupol, Ukraine, and the sky above the complex was blackened by smoke. Despite evacuations, 200 residents remain stranded, and the EU is preparing to penalise Russian oil.

Following a truce agreed by the United Nations around the Soviet-era steel complex, several groups of civilians were able to flee the last holdout of Ukrainian militants in the southern port in recent days.

Since the commencement of the crisis in Ukraine, South African mining corporations have resorted to trucking coal to ports to fulfill a boom in European demand.

Coal is four times more expensive to transport than it is to transport by rail. It has begun to use trucks, but because of the high price of coal, miners are able to absorb the cost for the time being.

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