WASHINGTON (dpa-AFX) - Gold prices fell on Wednesday, as the dollar rallied amid the deepening Ukraine crisis in the wake of aggressive sanctions imposed on Russia by the U.S. and Western countries.
Spot gold dipped around 1 percent to $1,926.54 per ounce, while U.S. gold futures were down 0.8 percent at $1,928.40.
In the State of the Union speech, U.S. President Joe Biden said that Russian planes have been banned from the U.S. airspace in retaliation for the attacks on Ukraine. The decision followed moves by the European Union earlier this week.
As the war between Russia and Ukraine entered seventh day, Russian armed forces have captured the southern Ukrainian city of Kherson, RIA news agency reported.
The invasion of Ukraine is causing a mass exodus of companies from Russia, with Airbus, Ford, Google, and, belatedly, Apple joining the list.
Meanwhile, rising economic risks tempered investor expectations for how steeply the Federal Reserve will raise interest rates.
The outlook for a 50 basis point hike at the March 16 Fed meeting has dissipated, though a smaller 25 basis point hike is seen as a virtual certainty.
Federal funds futures markets now price only a 5 percent chance of a 50 basis point hike at the upcoming Fed meeting.
Market participants await Fed Chair Jerome Powell's testimony before the U.S. Congress on Wednesday and Thursday for more clarity on interest rates.
Also, the Fed Beige book report along with the ADP private payrolls data for February will be released in the New York session.
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