Easing tensions between Russia and Ukraine have prompted the golden yellow metal to slip from an eight-month high after investors began reducing holdings on safe-havens.
In the Asian session, spot gold traded at $ 1,851 per ounce following a fall from the $ 1,879 level it reached on Tuesday. Gold futures were down around $ 1,853 an ounce.
Most recently, Russia has announced the withdrawal of some of its troops from the Ukrainian border following President Vladimir Putin’s meeting with German Chancellor Olaf Scholz.
While risks remain as there are still Russian troops conducting exercises in Belarus, the market is seen to be gradually recovering which has seen safe-haven assets return to decline, including gold.
The decline in gold also followed a rebound in 10 -year U.S. treasury yields which rebounded to 2%, a two -year high.
However, U.S. producer price index (PPI) data showing an increase above expectations to some extent helped gold to limit its decline.
UK inflation data, US retail sales as well as the minutes report of the FOMC meeting to be released in today's trading session will be the focus to determine the next movement of gold.
