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Gold futures struggled for direction early Tuesday as investors monitored developments in Ukraine and Treasury yields continued their rise.
Gold for June delivery
GC00,
GCM22,
fell $1.40, or 0.1%, to $1,932.60 an ounce on Comex. May silver
SIK22,
rose 22 cents, or 0.9%, to $24.81 an ounce.
Gold’s appeal as a haven “offers investors some comfort, amid heightened geopolitical risk, caused by the ongoing war in Ukraine, and doubts over economic growth prospects, especially in Europe,” said Ricardo Evangelista, senior analyst at ActivTrades, in a note.
Western leaders said they would investigate evidence of alleged war crimes by Russian forces and talked up the possibility of additional sanctions against Moscow.
Ukraine War: Europe considers restricting Russian gas and oil imports
“On the other hand, market expectations that the Federal Reserve will accelerate the pace of tightening, are capping the demand for gold,” Evangelista said. “As Treasury yields continue to rise, so does the cost of holding nonyielding bullion, and further bond market weakness is likely to trigger more pronounced losses for gold.”
The yield on the 10-year Treasury note
TMUBMUSD10Y,
was at 2.465%, up from 2.409% Monday afternoon.
