London, (Business News Report)|| Gold prices fell, on Tuesday morning, after the dollar maintained its gains, with increasing expectations of imposing more sanctions on Russia.
The US Federal Council’s intention of larger increases in the interest rate to curb inflation, pushed gold prices to decline.
In spot transactions, gold prices fell 0.2% to $ 1928.52 an ounce this morning.
US gold futures fell 0.1 percent to $1,931.70.
The dollar index stabilized after three consecutive sessions of gains, amid increasing talk of imposing more sanctions against Moscow.
An increase in the dollar makes gold less attractive to holders of other currencies.
As for other precious metals, silver fell in spot transactions 0.2% to $24.45 an ounce, platinum fell 0.5% to $981.88, and palladium increased 0.5% to $2,286.63.
In the technical analysis, the prices of an ounce of gold today traded at 1,928 levels, while its trading is still below the important 1,960 area. It is possible to witness a corrective rise to those mentioned levels if it manages to breach it, we will see it at the resistance levels in 2006.
But if it fails to do so, we expect it to fall again to the support levels of 1,909. Its stability below it will reinforce its decline to touch 1,882 levels, as we mentioned previously.
Whereas, US two-year Treasury yields rose to their highest level since early 2019 and 10-year yields rose on Monday. Higher returns increase the opportunity cost of holding unpaid bullion.
During these turbulent times, gold remains supported as an important portfolio hedge that shines during the most challenging phase when inflationary pressures remain strong, but growth slows, Stephen Innes, managing partner at SBI Asset Management, said in a note.
Spot silver prices rose 0.6 percent to $24.64 an ounce, platinum fell 0.6 percent to $980.36, and palladium rose 1.2 percent to $2,301.05.
Separately, the US Treasury continues to put pressure on Russia, halting payments of Russian debt in dollars from Russian government accounts in US banks.