Gold eases from key $2,000 mark as firm dollar dulls appeal

March 8: Gold prices slid from the key $2,000-per-ounce mark on Tuesday, as the U.S. dollar held firm near a multi-month peak, while palladium eased from record highs after investors took a breather as Russia-Ukraine talks hardly advanced.

FUNDAMENTALS

* Spot gold was down 0.5% at $1,987.86 per ounce, as of 0223 GMT, after scaling a 1-1/2-year peak of $2,002.40 on Monday. U.S. gold futures were down 0.2% at $1,992.90.

* Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.8% to 1,062.7 tonnes on Monday - their highest since March 2021.

* Palladium was up 0.3% at $3,005.63 per ounce, but eased from an all-time high of $3,440.76 scaled on Monday.

* Russia accounts for 40% of global production of the auto-catalyst metal, used by automakers in catalytic converters to curb emissions.

* Palladium prices have rocketed 80% this year to all-time highs as financial sanctions on Russia could disrupt shipments and worsen a supply shortage.

* Russia warned that oil prices could surge to $300 a barrel and it might close the main gas pipeline to Germany if the West halts oil imports over the invasion of Ukraine as peace talks on Monday made little progress.

* The dollar index held close to a 21-month peak hit on Monday, making gold less attractive for holders of other currencies, following news of a potential oil import ban on Russia.

* Russian negotiators said they did not have positive developments to report following talks with Ukraine and warned not to expect the next round to bring a final result. The talks "are not easy," negotiator Vladimir Medinsky said.

* Among other metals, spot silver fell 0.7% to $25.47 per ounce, while platinum fell 0.2% to $1,120.88.