By Gina Lee

Investing.com – Gold was down on Wednesday morning in Asia, with the consolidating at its highest level in more than two years and pressuring demand for the greenback-priced yellow metal.

They were at $1,897.30 as of 12:46 PM ET (or 4:46 PM GMT).

Matt Simpson, senior market analyst at City Index, stated that $1,900 was a key level in today’s session. However, the U.S. Dollar is at a 25 month high.

On Wednesday, the dollar, which moves in inverse proportion to gold, climbed a little. The dollar was at its strongest month since 2015, when it reached its peak.

According to data from European Union gas transmission operators, Russia cut off gas supplies to Poland in the Yamal contract. This latest development highlights the growing tension between Russia and West regarding the Ukraine war, which was precipitated by Russia’s invasion on February 24,

While headlines from Russia supported gold Tuesday, investors were looking for safe havens. However, the news about the conflict in Ukraine was not as bullish as it used to be a few weeks back and will likely fade this week, Simpson said.

Asian stocks were affected by a sell-off of global stock markets in the early trades. Investors began to shift away from more risky assets such as shares and currency, in response to growing concerns about the global economic outlook.

The price of other precious metals rose 0.1% and fell 0.1%. It then firmed 0.6% up to $2,198.48.