FX.co ★ Gold Slips As Dollar, Yields Strengthen

Gold prices were flat to slightly lower on Tuesday, as elevated Treasury yields as well as a firmer dollar countered support from uncertainty around the Russia-Ukraine conflict.

Spot gold was virtually unchanged at $1,978.31 per ounce, while U.S. gold futures were down 0.3 percent at $1,980.55.

Bond yields climbed and the dollar index climbed to March 2020 highs after St. Louis Federal Reserve Bank President James Bullard repeated his case for more aggressive policy tightening.

The central bank is prepared to get to neutral expeditiously, Bullard said on Monday, reiterating that he supports interest rate at 3.50 percent by the year end.

The path outlined by Bullard would require 50 basis point rate hikes at each of the remaining meetings for this year. He said that a 75 basis point rate hike could be an option, if necessary.

The 10-year U.S. yield hit a fresh three-year peak while German and U.K. 10-year yields climbed to the highest since 2015, reflecting inflationary concerns and expectations of faster hikes by the Fed over the next several months.

In economic releases, U.S. building permits and housing starts for March are set for release in the New York session.