By Asha Sistla

(Reuters] – Gold prices remained flat in Wednesday’s session as hawkish U.S. Federal Reserve official comments boosted the dollar & Treasury yields to multiyear highs. The support of uncertainty over the Ukraine war and denting bullion’s safe-haven market was offset by support from the dollar.

After falling 0.4% in the previous session, it was unchanged at $1,922.59 an ounce as of 0320 GMT. U.S. fell 0.1% to $1926.20

Matt Simpson, City Index Senior Market Analyst said “Traders are still heavily net-long gold futures market and that is clearly helping to support prices overall.”

“Yet the U.S. dollar is weaker and safe-haven demand limit its upside potential.”

With Fed officials pushing for quick reductions in central bank’s excessive balance sheets, the dollar soared to its highest point in two years. However, one Fed official expressed willingness to accept rate increases up to half a percent. [USD/]

The stronger dollar renders gold less appealing to other currency holders.

Simpson stated that yesterday’s hawkish remarks by key Fed members will likely outshadow today’s FOMC minutes. They point to a 50-bp increase at the FOMC next meeting, and a quicker balance sheet reduction than expected.

The Fed will make public Wednesday the minutes of its March Meeting. This could give details regarding its plans to decrease its bond holdings.

U.S. Treasury yields have risen to multi-year heights. Longer-term yields are moving faster, partly reversed by recent U.S. inversions. [US/]

The rising U.S. Interest Rates and Higher Yields make gold highly sensitive. This increases the opportunity cost to hold non-yielding bullion while also increasing the value of the Dollar, where it is traded.

The United States and allies decided Wednesday that they would impose additional sanctions against Moscow in response to civilian deaths in the northern Ukraine.

Spot gold was steady at $24.32 per troy ounce. Platinum fell 0.3% to $965.11 while palladium dropped 0.1% to $2235.92