NEW YORK: 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.
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.
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.
Meanwhile, several Federal Reserve officials are expected to speak this week, which could provide insights into the future path of interest rates. Traders see a 59.1% chance of a 25-basis-point cut in December and a 40.9% chance of rates being held steady.
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