Gold prices slide from key $2,000-mark as firm dollar dulls appeal

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. [GOL/ETF]

* 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. Read full story

* 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. Read full story

* 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. [USD/]

* 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. Read full story

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