usd index

Gold Holds Steady as Russia-Ukraine Peace Talks and Fed Outlook Drive Market Focus

Gold prices have rallied from an overnight low around the $3323/oz handle to a high of $3360/oz before settling around the $3350/oz mark.The precious metal looks set to continue its choppy price action at the start of a busy week.

The recovery in Gold from the overnight low could in part be down to lower US Treasury Yields with the benchmark 10Y US Treasury yield falling from its recent highs.

Tariffs Shake Markets: Equities Drop, Yields Rise, and USD Strengthens

Financial markets reacted negatively to President Trump’s announcement of 25% tariffs on automobile imports, effective from 2 April. US and European equities sold off. 

St Louis Fed President Musalem warned that inflationary impact from  tariffs might be longer- lasting, prompting Fed to  keep interest rates higher. 

Treasury and Australian yields were higher, but Gilt yields in the UK fell as the UK government confirmed plans for public spending cuts.