Gold flat as weaker yields, Ukraine worries counter firmer dollar

Gold flat as weaker yields, Ukraine worries counter firmer dollar

Gold prices were flat on Wednesday, after gaining as much as 1% in the last session, as Treasury yields eased after U.S. inflation data and concerns over Ukraine conflict supported safe-haven bids, while a firm dollar capped bullion's gains.

FUNDAMENTALS

* Spot gold was little changed at $1,964.70 per ounce by 0136 GMT, after hitting a near one-month peak of $1,978.21 on Tuesday. U.S. gold futures were down 0.4% at $1,968.80.

* U.S. Treasury yields moved lower on Tuesday, with the benchmark 10-year Treasury yield on track for its first decline in eight sessions after a reading on inflation showed an acceleration in March, but sparked hope higher prices may have peaked.

* U.S. monthly consumer prices increased by the most in 16-1/2 years in March as Russia's war against Ukraine boosted the cost of gasoline to record highs, cementing the case for a 50 basis point interest rate hike from the Federal Reserve next month.

* While gold is considered a hedge against inflation, higher U.S. interest rates and yields increase the opportunity cost of holding bullion.

* Ukraine told Russia to release prisoners of war if it wants the Kremlin's most high-profile ally in the country freed, as the United States is expected to