NEW YORK: Gold rose about 2% on Wednesday as a retreat in the dollar rekindled some of its safe-haven appeal, although prospects of sharp rate hikes kept the non-yielding precious metal near a 2-1/2-year trough.

Spot gold climbed 2% to $1,660.62 per ounce by 1:49 p.m. EDT (1749 GMT), to recoup some losses from a slide to its lowest since April 2020 earlier in the day.

US gold futures settled 2.1% higher at $1,670.00.

A pullback in the dollar and yields have “seen gold move off those lows,” said David Meger, director of metals trading at High Ridge Futures.

“The factors in regards to Russia and the discussion of annexation... that probably gave a bid to the (gold) market from a safe-haven perspective,” Meger added.

The dollar retreated after scaling a new two-decade high, making bullion less expensive for overseas buyers, while Treasury yields eased.