Gold: Gold slips over 8 months as Biden-Putin meeting plans dampen demand

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Gold prices fell from a high of more than eight months earlier on Monday as demand for safe havens eased after the US president agreed to meet with his Russian counterpart over the crisis Ukrainian.

FUNDAMENTALS


* Spot gold fell 0.2% to $1,893.80 an ounce at 0139 GMT, falling $1,908.02 – its highest since June 3 hit earlier in the session. US gold futures were flat at $1,898.60.

* US President Joe Biden has agreed in principle to a summit with Russia’s Vladimir Putin on the Ukraine crisis after the two countries’ foreign ministers meet next week and if an invasion does not take place, the White House.

* Russia will extend military exercises in Belarus that were due to end on Sunday, the Belarusian Defense Ministry said, adding to growing tensions as satellite images appeared to show new deployments of Russian armor and troops near Ukraine.

* A possible invasion of Ukraine by neighboring Russia would be felt in a number of markets, from wheat and energy prices to the region’s dollar sovereign bonds, safe havens and stock markets .

* Elsewhere, Japan’s manufacturing activity grew at the slowest pace in five months in February as output contracted.

* Buyers at major Asian hubs postponed physical gold purchases last week due to a price hike following escalating tensions between Russia and Ukraine, prompting Indian traders to offer the lowest discounts higher in nearly seven months. [GOL/AS]

* Spot silver fell 0.7% to $23.79 an ounce, platinum rose 0.3% to $1,070.29 and palladium was flat at $2,346.80.

DATA/EVENTS (GMT)

0815 France Markit Mfg, Serv, Comp Flash PMI Feb

0830 Germany Markit Mfg, Serv, Comp Flash PMI Feb.

0900 EU Markit Mfg, Serv, Comp Flash PMI Feb

0930 UK Flash Serv, Comp, Mfg PMI Feb.

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