Strong US inflation data readings have provided little support for gold trading and are on track to record their weekly gains for two consecutive weeks.
The US annual consumer price index (CPI) rose 7.9% in February, the highest figure recorded since January 1982. While on a monthly basis, the CPI met expectations to increase by 0.8% from 0.6% previously recorded.
Gold prices continued to rise above the $ 2,000 per ounce price level following the data, before declining again following an increase in 10 -year U.S. treasury yields that reached 2% for the first time in two weeks.
The surge in bond yields was driven by rising investor confidence that the Federal Reserve (Fed) will start raising interest rates for the first time since 2018 at the FOMC policy meeting next week.
Gold tends to decline if there is a policy tightening or an interest rate hike implemented by major central banks.
Meanwhile, the fourth round of talks between Russia and Ukraine ended with no agreement on a ceasefire and humanitarian corridors.
This puts the precious metal to remain stable around $ 1,992 per ounce in the Asian session, with gold futures trading at $ 1,996 per ounce.
