By Gina Lee

Investing.com – Gold was down on Wednesday morning in Asia, as Treasury yields rise following U.S. and European sanctions on Russia offset safe-haven demand.

They were at $1,901.65 as of 10:38 ET (03:38 GMT) and 0.3% lower than the previous day. On Wednesday morning, the, which moves in the opposite direction to gold, climbed a little.

that target Russia’s sale of sovereign debt and elites on Tuesday after Russian President Vladimir Putin ordered troops in two breakaway regions in easter Ukraine.

The sanctions are going to punish Russia’s economy but are not intended to hit energy markets, a senior U.S. State Department official said. Germany suspended the construction of a major Russian gas pipeline.

The sanctions pushed the U.S. Treasuries higher.

Investors expect that the Federal Reserve will raise interest rates in response to the Russia-Ukraine tension.

James Bullard, the president of St. Louis Fed, has been aggressive at the Federal Reserve. He is pushing for 100 basis points in rate hikes during the next three meetings.

The Asia Pacific raised its interest rates and stated that they plan to increase them higher than expected in order to control inflation.

Other precious metals: Silver rose 0.2% while platinum fell to $1,075.75, and palladium rose 0.3%.