Precious-Gold retreated on Tuesday after Russian President Vladimir Putin ordered his troops to come back to base, easing some of the East-West tensions over a possible war on Ukraine.
Markets plunged on Monday after Putin forces tightened their grip in Crimea, causing a rise of a political tension between the United States and its Western allies and Russia.
The main focus meanwhile is on the deadlock situation between Russia and its neighbor Ukraine after the ouster of the Russian-backed President Viktor Yanukovich.
Gold benefited from haven demand yesterday to climb to four-month high, after opening on an upside gap, yet it pared some of Monday’s gains today. The rally stopped after hitting a peak of $1354.60 on Monday, the highest since September.
Meanwhile, the yellow metal is trading around $1339.60 an ounce after hitting a high of $1352.40 and a low of $1336.89.
So far, the metal has gained around 12 percent this year after sliding to 28 percent last year.
The key contribution to the metal came from the slowdown in U.S. recovery pace after a parade of dismal reports, noting that haven demand also got support from the rout in emerging markets and recent escalation between the West and Russia.
Fed Chair Janet Yellen said on Thursday that the central bank is “open to reconsidering” the pace of stimulus reduction should recovery wanes.
The coming Fed meeting on March 18-19 is expected to be vital, as it will determine the seriousness of policymakers regarding stimulus taper.
The U.S. dollar dropped against a basket of major currencies to hover around 79.98 after opening at 80.08, according to the dollar index.
Crude oil for April’s delivery slumped to trade around $103.74 a barrel, after touching a high of $105.19 on Monday.