WASHINGTON (dpa-AFX) - Gold edged lower on Wednesday as an uptick in bond yields and hopes for a diplomatic way out of a new devastating war in Ukraine dented the metal's appeal.
Spot gold slipped 0.2 percent to $1,895.33 per ounce, while U.S. gold futures were down half a percent at $1,897.20.
The yield on 10-year Treasury notes rose to 1.977 percent from 1.947 percent Tuesday, weighing on bullion prices.
Traders are rebuilding bets on a 50 basis-point Federal Reserve rate hike in March due to surging inflation expectations and hawkishness from some officials.
Investors were also focused on updates surrounding the situation in Ukraine amid receding fears of a full-fledged war.
After announcing what he called the 'first tranche' of sanctions, including steps to starve Russia of financing and target financial institutions, U.S. President Joe Biden on Tuesday left the door open to a final effort at diplomacy.
There's no question that Russia is the aggressor, but there is still time to avert the worst case scenario that will bring untold suffering to millions of people, the president said in a nationwide address from the White House.
Meanwhile, Russian President Putin said Moscow is ready to look for 'diplomatic solutions' amid tensions with the West over Ukraine.
'But the interests of Russia, the security of our citizens, are non-negotiable for us,' he added.
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