Gold futures lost ground Tuesday, extending a decline after news reports indicated tentative signs of progress in talks between Russia and Ukraine, crimping demand for traditional safe-haven assets, including precious metals.
Gold for April delivery GC00, -2.57% GCJ22, -2.57% fell $35.10, or 1.8%, to $1,904.70 an ounce on Comex. May silver SI00, -4.43% SIK22, -4.43% fell 70.1 cents, or 2.8%, to $24.495 an ounce.
Russian news agency Tass quoted Russia’s deputy defense minister as saying the country’s military would “radically reduce” activity outside Kyiv and Chernihiv, according to the BBC. Russian news agencies also quoted Moscow’s negotiators reporting progress after talks with Ukrainian counterparts resumed in Turkey.
The reports have prompted traders to boost bets on riskier assets, said Naeem Aslam, chief market analyst at AvaTrade, in emailed comments. U.S. stock-index futures extended earlier gains following the reports.
“Gold prices are losing their mojo as investors believe that most of the risk in relation to the Ukraine and Russian war is fully priced,” he wrote.
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