Gold Losing Strength Globally As Russia Pledged To Curb Attacks In Ukraine

Gold rates are losing strength in the international markets for a few days now, after staying strongly bullish for a very long time. In the Indian markets, the yellow metal dropped over the past 5 days. In India, today, on March 30, the 22 carat gold rates are quoted at Rs. 47,650/10 grams plunging by Rs. 100, and the 24 carat gold rates are quoted at Rs. 51,980/10 grams, plunging by Rs. 120. In March, gold rates in India were quoted as the highest in the second week, at around Rs. 49,800/10 grams.

The metal is considered a hedge against inflation. Importantly, the recent gain in gold rates was because of the Russia-Ukraine, not just solely due to the high inflation rate. The geopolitical crisis had outrun the impacts of inflation. However, after more than 1 month, the metal is going bearish now.

In addition to that, the commodity markets have also absorbed the fact that Russia can curb attacks on Ukraine, especially around the capital Kyiv and Chernihiv. Recently, Russia has pledged this, after the two country's talks in Istanbul. Gold rates recently gained as a safe haven. As the uncertainties are expected to stay under control, the yellow metal has also started to fall now.

Also, gold is marginally bearish now as the US yield curve has inverted sharply. Investors now are much more attracted to government bonds; the precious metal has dropped below $1920/oz in the Comex bullion futures.

About the recent market trend, OANDA senior market analyst Edward Moya told Kitco News, "Gold prices plunged after Russia-Ukraine peace talks yielded some progress. For a moment, it looked like the biggest geopolitical risk could be poised for a major de-escalation, and the safe-haven trade was quickly abandoned."

Today, the Comex gold futures were quoted at $1925.50/oz, gaining by 0.39%, till last traded. Yesterday it was last quoted at $1918.0/oz. The spot gold prices are quoted at $1918.90/oz, fell by 0.11%, till last traded. On the other hand, the US dollar index in the spot market stood at 97.85, falling marginally by 0.59%. In India, the MCX gold in April future was quoted at Rs. 51,030 grams, gaining by 0.43%, till last traded.