Investing.com - Gold prices dropped on Tuesday as the Russia-Ukraine standoff began to ease, which chipped away at gold''s image as a safe-haven asset class amid times of crisis.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at $1,338.80 a troy ounce during U.S. trading, down 0.85%, up from a session low of $1,331.50 and off a high of $1,352.80.
The April contract settled up 2.17% at $1,350.30 on Monday.
Futures were likely to find support at $1,320.10 a troy ounce, Friday''s low, and resistance at $1,355.00, Monday''s high.
Russian President Putin said earlier that Moscow reserved the right to use force in Ukraine’s Crimea region in the event of “lawlessness” but added that such a move would be a last resort, which sparked a wave of relief across markets and enticed investors out of safe-haven gold positions.
Elsewhere, Russia''s defense minister ordered troops engaged in military exercises close to Ukraine’s borders to return to their bases.
Still, Russian forces continue to maintain military presence in Crimea, which capped gold''s losses.
Concerns that the standoff may result in sanctions slapped on Russia and hamper global economic recovery also supported the yellow metal, especially on fears the rouble could suffer.
Meanwhile, silver for May delivery was down 1.01% and trading at US$21.267 a troy ounce, while copper futures for May delivery were up 1.28% at US$3.213 a pound.