By Gina Lee

Investing.com – Gold was down on Thursday morning in Asia. As U.S. Treasury yields rose, and oil dropped after that, investors retreated from this safe-haven yellow gold.

After falling by 1% in the previous session, it fell 0.11% to $1.986.10 at 11:42PM ET (4:42AM GMT)

Yellow metal lost 3% during the session before, marking the biggest daily drop since January 2021. It also stopped an uptrend that had seen it reach a high of almost 5% in August 2020. While oil prices dropped, Wednesday’s benchmark was up for the third day straight. However, inflation remains a worry.

The U.S. will publish its consumer price index in the later part of the day. On Mar. 1, the U.S. Federal Reserve will also announce its most recent policy decision. 16. The European Central Bank, across the Atlantic will issue its policy decision in the latter part of the day.

On Wednesday, commodity prices saw a cooling in their rallies. As markets digested disruptions from Russia and Ukraine (two major producers of food, metals and energy), this rally reached new multi-year records. However, the conflict stemming from Russia’s invasion of Ukraine on Feb. 24 continues.

American oil producers are also being urged by the U.S. to boost their production, if at all possible. Saudi Arabia and the UAE, are the two Organization of the Petroleum Exporting Countries members and their allies (OPEC+). They have the capability to produce.

Palladium dropped 1.1% to $2.904.04 an ounce in other precious metals. On Monday, the metal used to make catalytic converters that reduce emissions climbed to an all-time high of $3.440.76. Fears of Russian supply disruptions drove this increase. To $1,065.14, silver dropped 0.9% while platinum plummeted 1.1%