Gold slips further away from 8-month high as Ukraine tensions ease

[BENGALURU] Gold prices slipped on Wednesday (Feb 16), pulling further away from an 8-month peak scaled in the previous session, as signs of a slight de-escalation in the Russia-Ukraine standoff diminished the appeal of safe-havens.

Spot gold was down 0.1 per cent at US$1,850.91 per ounce, as of 1.10 am GMT. US gold futures dropped 0.2 per cent to US$1,852.40.

Gold prices had rallied to their highest since June last year on Tuesday, buoyed by safe-haven demand, before giving up all those gains on news indicating some easing in Russia-Ukraine tensions.

Stocks on Wall Street and in Europe rebounded on Tuesday, while oil prices fell after Russia indicated it was withdrawing some troops from exercises near Ukraine and President Vladimir Putin said he saw room for further discussion with the West.

US producer prices increased by the most in 8 months in January amid a surge in the cost of hospital outpatient care and goods such as food and motor vehicles, another sign that high inflation could persist through much of this year.

British inflation is on track to peak at a 30-year high of over 7 per cent in April, but differences in forecasts for energy prices and wages mean private-sector economists and the Bank of England are split over what happens next.

Among other precious metals, spot silver fell 0.2 per cent to US$23.30 per ounce, platinum dipped 0.4 per cent to US$1,021.92, while palladium rose 0.3 per cent to US$2,253.66. REUTERS