Investing.com – Gold was down on Wednesday morning in Asia, coming down from an eight-month high hit during a volatile previous session. The support for the yellow metal was weakened by weaker bond yields due to rising fears about a Russian invasion in Ukraine.

By 12:22 PM ET (5:00 AM GMT), the price had fallen 0.11%, to $1854.25 The indices reached the highest levels since June 2021. However, they closed nearly 1% lower on Tuesday. On Wednesday, while U.S. Treasury yields declined, the, which is normally inversely related to gold, increased slightly.

Asian shares recovered from losses and a Russian announcement about its intention to withdraw troops from Ukraine’s border has dissipated fears of an armed conflict.

The more fungible Dollar is the safer option to gold for core investors. If the Ukraine crisis escalates, it could lead to a fall in gold.

A Reuters poll predicts that the U.S. Federal Reserve will raise interest rates by 25 basis points in March 2022. A growing number of people predict that the central bank would opt for an aggressive half-point increase to lower high inflation.

The minutes of its previous meeting are also available by the Fed later in the day.

Avtar Sandu, Phillip Futures Analyst said in a note that “besides weekly momentum indicators (and buying the dip) indicating that resistance is higher), most traders anticipate higher volatility to continue to be a mainstay of the gold markets going forward as market whispers rise.”

The consumer price index in Asia Pacific grew 0.9% to 0.4% between January and February. Data also revealed that the consumer price index rose 9.1% in January.

Other precious metals saw silver drop 0.1% while platinum edged up 0.2%. Palladium increased 2.7%.