Precious-Gold was little changed on Wednesday, and traded below its highest level in four months, as the Russia-Ukraine tension eased after Putin’s latest announcements. Now investors will bring their focus on U.S. data.
The East-West tension eased after Russian President Vladimir Putin said there no immediate need to invade Ukraine, taking another step backwards after he ordered his military troops to come back to base on Tuesday.
The cool in worries in Ukraine reduced haven demand on gold, while the recent gains in the metal have caused some profit taking by investors.
So far, the metal has gained around 11 percent this year after sliding to 28 percent last year.
The rally stopped after hitting a peak of $1354.60 on Monday, the highest since September, yet a drop below Monday’s upside gap is needed to guarantee bearishness.
Meanwhile, the yellow metal is trading around $1334.55 an ounce after hitting a high of $1337.87 and a low of $1332.87.
Investors will shift their attention back to U.S. data as they aim to gather clues about the Fed’s pace of stimulus taper.
Fed Chair Janet Yellen said on Thursday that the central bank is “open to reconsidering” the pace of stimulus reduction should recovery wanes.
Later in the day, U.S. ISM non-manufacturing may show the private sector’s expansion eased in February to 53.5 from 54.0 a month earlier.
Data due on March 7 may show U.S. payrolls climbed 150,000 last month, after soaring 113,000 in January.
The U.S. dollar resumed its rebound for a third straight session against a basket of major currencies to hover around 80.16 after opening at 80.13, according to the dollar index.
Crude oil for April’s delivery trade near the session’s opening around $103.37 a barrel, after touching a record high of $105.19 on Monday.