Gold prices ease from one-week high as US dollar strengthens

Gold prices eased from a one-week high on Wednesday as the dollar strengthened, though safe-haven demand linked to Russia-Ukraine tensions helped cap further losses, reports Reuters.

Spot gold was down 0.2% at $2,627.60 per ounce as of 1238 GMT, after hitting its highest level since Nov. 11 earlier in the session. US gold futures were steady at $2,631.30.

A line chart titled "Spot gold price in USD per oz" that tracks the metric over time.

The US dollar rebounded after hitting a one-week low. A stronger US currency makes bullion more expensive for overseas buyers.

The current decline in gold can be attributed to profit-taking and a stronger dollar, but developments in the Russia-Ukraine situation are crucial and should be closely observed, said Zain Vawda, market analyst at MarketPulse by OANDA.

Russian President Vladimir Putin lowered the threshold for a nuclear strike in response to a broader range of conventional attacks, days after reports said Washington had allowed Ukraine to use US-made weapons to strike deep into Russia.

Among other metals, spot silver fell 1% to $30.89, platinum shed 0.7% to $967.65 and palladium edged about 0.5% lower to $1,030.31.