By Gina Lee

Investing.com – Gold was down on Monday morning in Asia, with the resumption of peace talks between Ukraine and Russia denting the yellow metal’s safe-haven appeal. Higher yields and a stronger U.S. currency also had an impact on gold.

The dollar fell to $1.943.6 at 1:04M ET (0:04 GMT) The normal movement of the dollar is inverted to that of gold. Monday’s morning saw the dollar rise.

U.S. Treasury yields increased on Friday with the benchmark 10 year note reaching nearly three-year highs. Investors continue to consider high inflation and a cautious U.S. Federal Reserve.

Meanwhile, in Asia Pacific, Japanese deputy chief cabinet secretary Seiji Kihara said on Sunday that the country’s monetary policy must remain loose. The did not respond to the threat on Friday but offered to purchase unrestricted amounts of Japanese government bonds (10-year) for 0.25% starting Monday morning. This was after the JGB yield increased to 0.2245%, a 6-year record.

Ukraine and Russia will resume peace talks within the week to resolve the conflict that was accentuated by Russia’s invasion of Ukraine on Feb. 24. Ukrainian President Volodymyr Zelenskiy insisted on his country’s territorial integrity, after suggesting earlier that he was ready for a compromise.

The Central Bank of the Russian Federation or the Bank of Russia will be buying more gold from banks. They will also pay a fixed price of 5,00 roubles ($48.94 per gram) for the period March 28 to June 30, the Bank of Russia announced Friday.

SPDR Gold Trust’s (P:), holdings rose 0.5% Friday to 1,093.18 tons, their highest level since February 2021.

Due to low physical gold demand and high jewelry prices, many people sold old Indian jewelry during the week prior due to their high price. Purchases of Chinese metal were also affected by the latest COVID-19 epidemic. On Monday, Shanghai was placed in a lockdown in two stages.

Other precious metals saw a 1.2% decline and 0.8% fall, respectively, while the price rose 1.3%, to $2,366.12.