By Bharat Gautam

(Reuters) – Gold continued its slide Tuesday, as Russia-Ukraine ceasefire talks reduced demand for safe haven assets. Meanwhile, bets that U.S. Federal Reserve might raise interest rates for only the third time in the past three years added pressure to gold.

It was at $1,928.58/ounce as of 1032 GMT. This is 1.2% less than it had been at March 3, when it reached $1,924.56.

U.S. dropped 1.5%, to $1930.70

Ricardo Evangelista, senior analyst at ActivTrades said that there are “fears” that talks between Russia and Ukraine will lead to a reduction in tension.

While gold may be experiencing a little bit of a lull at the moment, Ukraine’s situation remains volatile and uncertain.

For the third session in succession, gold prices will fall. It could mark their longest losing streak since February.

At the conclusion of Wednesday’s two-day meeting, Fed officials are expected to increase borrowing costs by 25%.

Due to the impending announcement, U.S. 10-year Treasury Yields have been elevated. This has put pressure on gold as rising U.S. Interest Rates increase the potential cost of holding non yielding bullion. [US/]

Ole Hansen, a Saxo Bank analyst, stated that “the first rate increase from the U.S. fairly often signals a high point in gold”, and that we will see tomorrow what signal they send, as well as how hawkish, which will likely determine the short term outlook.”

Spot palladium rose 1.7% to $2,428.72 an ounce on Monday, following its weakest session for two years. This was due to easing supply worries.

Hansen stated that palladium, which is notoriously volatile, has been unable to be shielded from the effects of war premiums being removed from commodity markets. [O/R]

Spot Silver fell 1.8%, to $24.58/ounce. Platinum dropped 1.8%, to $1,012.04.