Gold Price Steadies Around $1860s Despite Us Dollar Strength, High Us Bond Yields

The safest haven asset of all, gold, has remained steady during the beginning of the week, despite a stronger US dollar across major currencies.

The Golf Index, however, has retreated from daily tops around $1,871 as geopolitical tensions appear to ease in the conflict between Russia and Ukraine. XAU/USD is trading at $1,867, up some 0.43% now.

Financial markets sentiment remains downbeat, as shown by global equities falling, except for the Nasdaq Composite in the US. US Treasury yields keep rising, led by the 10-year T-note yield, at 2.021%, up to ten basis points in the day, though the non-yielding metal remains stubbornly in the green, amid escalations in the eastern Europe conflict.

In the meantime, Russia / Ukraine geopolitical jitters are the leading indicator in the markets at press time. Earlier, as reported by CNN, the US intelligence is assessing Russian military plans, including the surrounding of Kyiv, within 24-48 hrs from the start of military action. Nevertheless, early messages from the Russian Foreign Minister Sergey Lavrov on Monday said Russia could move forward with talks, emphasizing that the west has failed to address Russia’s interests.

Those remarks appeared to ease the market mood, though they failed to reignite a rally in US equities. Regarding the economic calendar, the Fed speaking in the likes of St. Louis President James Bullard, crossed the wires. He commented that he keeps his 1% threshold by July 1st at 1% concerning interest rates. While speaking of the balance sheet, he is worried that the Fed is not moving fast enough and would like to reduce the balance sheet in Q2.