Gold Down, UAE Comments Induce Drop in Oil and Improved Risk Sentiment By

© Reuters.

By Gina Lee – Gold was down on Thursday morning in Asia. Investors retreated from the safe-haven yellow metal as US Treasury yields rose and oil fell after).

edged down 0.11% to $1,986.10 by 11:42 PM ET (4:42 AM GMT), after falling 1% earlier in the session.

The yellow metal pulled back about 3% in the previous session, the worst daily decline since January 2021, and halted a rally that took it near a record high hit in August 2020. The benchmark rose for a third consecutive day on Wednesday, with inflation remaining a concern even as oil prices fell.

On the data front, the US will release its consumer price index later in the day, with the US Federal Reserve also due to hand down its latest policy decision on Mar. 16. Across the Atlantic, the European Central Bank will also hand down its own policy decision later in the day.

Commodity prices cooled their rally on Wednesday. This rally saw record multi-year highs as markets digested supply disruption from Russia and Ukraine, two major producers of energy, metals, and crops. However, the conflict stemming from Russia’s invasion of Ukraine on Feb. 24 continues.

The US is also urging fellow oil producers to increase production if possible. The UAE and Saudi Arabia are two of the few Organizations of the Petroleum Exporting Countries and allies (OPEC+) members with the capacity to do so.

In other precious metals, palladium fell 1.1% to $2,904.04 per ounce. The metal, used in catalytic converters to curb emissions, climbed to a record high of $3,440.76 on Monday. This was driven by fears of supply disruptions from Russia, a top producer. Silver fell 0.9% and platinum fell 1.1% to $1,065.14.

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