Gold prices were dipped as the dollar index strengthened to its highest in more than one week, making the bullion more expensive for other currency holders. The dollar has benefited from its status as a safe haven and the ongoing conflict in Ukraine has driven expectations that the US Federal Reserve will hike interest rates. Investors also reduced bullion holdings as Ukraine and Russia were set for their first peace talks. The prices of gold and palladium tumbled on Tuesday on prospects of easing tension between Russia and Ukraine. The prices were additionally weighted as the US dollar held firm at a three-week high and yields climbed.
