Gold steady on weaker dollar, caution on Ukraine By Reuters

© Reuters. FILE PHOTO: Marked ingots of 99.99 percent pure gold are placed in a cart at the Krastsvetmet non-ferrous metals plant in the Siberian city of Krasnoyarsk, Russia March 10, 2022. REUTERS/Alexander Manzyuk/

By Asha Sistla

(Reuters) - Gold steadied on Wednesday, buoyed by a weaker dollar and a slight pullback in U.S. bond yields, while investors awaited more details from Russia-Ukraine talks in Turkey.

Spot gold XAU= was nearly flat at $1,918.62 per ounce at 0947 GMT. U.S. gold futures GCv1 rose 0.3% to $1,923.10.

On Tuesday, gold prices dropped as much as 1.8% to their lowest level since February 28 on signs of progress in negotiations between Russia and Ukraine before recovering to close only 0.2% lower on the day.

"The war premium seems to be eroding out of the gold price to some extent," independent analyst Ross Norman said, adding gold's strong bounce off $1,890 was encouraging.

Russia on Tuesday pledged to cut down on military operations around Kyiv and in northern Ukraine. However, Ukraine and its Western allies dismissed a Russian military pullback from near Kyiv as a ploy to refit troops after heavy losses. (Full Story) (Full Story)

City Index senior market analyst Matt Simpson said investors remain wary of Russia's intentions.

The U.S. dollar =USD fell 0.5% to a near two-week low against its rivals, making greenback-priced gold less expensive for other currency holders. USD/

Yields on the benchmark U.S. 10-year Treasury note also eased, reducing the opportunity cost of holding zero-yield bullion. US/

The U.S. Treasury yield curve inverted on Tuesday for the first time since 2019, as investors priced in an aggressive rate-hiking plan by the Federal Reserve as it attempts to bring inflation down from 40-year highs. (Full Story)

Meanwhile, holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust (P:GLD), slipped 0.2% to 1,091.44 tonnes on Tuesday. GOL/ETF

Spot silver XAG= rose 0.1% at $24.76 per ounce and platinum XPT= was nearly steady at $982.44.

Palladium XPD= gained 1.6% to $2,182.48, after dipping to a more than two-month low of $2,032.97 in the last session.

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