By Asha Sistla

(Reuters) – Gold fell in range bound trade Thursday as yields and the dollar gained following the U.S. Federal Reserve’s aggressive stance against inflation. However, bullion was limited by uncertainty about the Ukraine conflict.

On 05/18 GMT, the price of an ounce was $1,920.82 less than it had been at 0.2% earlier. U.S. was down 0.1% at $1,924.20

Jigar Trivedi is a commodity analyst with Anand RathiShares in Mumbai. He said, “Looking at 10 year bond yield (gaining), the U.S. Fed’s tone hawkish, gold has lost in a range…instead putting your money long in safe-haven assets, people are going long on the dollar.”

Following Fed Minutes, where the central banks showed that they are preparing aggressively to curb inflation, dollar traded at close to a 2-year high against a basket currency. [USD/]

Gold is less desirable for currency holders who have a stronger dollar.

Many Fed officials said they were prepared to raise rates in half-percentage-point increments in coming policy meetings to tame inflation, according to the minutes released on Wednesday.

This benchmark was close to the multi-year peak reached in the last session. It increased the risk of owning non-yielding bullion. [US/]

Trivedi stated that an “escalation” in geopolitical tensions among Russia and Ukraine is possible. People are patiently waiting for Western nations to impose sanctions on Russia.

After accusing other countries of prioritising cash over the punishment for civil killings, which are condemned by the West as war crimes, Ukraine is seeking sanctions that will be economically damaging enough to Russia.

Spot gold fell 0.7% at $24.27/ounce. Platinum lost 0.5% at $948.34. Palladium rose 1.9% up to $2,238.56.