Gold Dropped 0.11% to $1,854.25

The price of gold fell on Wednesday morning in Asia. In the previous session, gold reached its highest point in eight months. Easing fears of a Russian invasion of Ukraine negated the support to the gold from weaker bond yields.

Gold futures declined 0.11% to $1,854,25 by 12:22 AM ET (5:22 AM GMT). As stated above, they hit their highest level since June 2021 on Tuesday, before changing course to close almost 1% lower. The U.S. currency, which normally moves inversely to gold, rose on Wednesday while U.S. Treasury yields fell. 

Asian shares recovered from recent losses. Russia’s decision to withdraw some troops from the Ukraine border helped boost Asian shares.

Looking ahead, the more exchangeable U.S. currency is the preferred safe haven to gold among core investors. The U.S. dollar could decline as a result of any further de-escalation in the Ukraine crisis, prompting a rally in gold and vice-versa.

Gold and other precious metals

The Federal Reserve is expected to raise interest rates in March 2022. The central bank also releases the minutes from its last meeting later in the day.

China’s factory-gate inflation eased to its slowest pace in several months, more precisely in six months and consumer price growth also softened in the first month of 2022. 

Based on the information provided by the National Bureau of Statistics, the producer price index increased 9.1% from a year ago. Producer prices in the country remain elevated thanks to critical supply issues at home and abroad. Still, the country’s relatively benign consumer inflation contrasts with cost pressures seen in most other economies. 

As previously mentioned, gold declined on Wednesday morning in Asia. In other precious metals, silver dropped 0.1%, while platinum gained 0.2% and palladium added 2.7%.