Gold at two-week low on higher yields

Gold prices slipped to a near two-week low on increasing U.S. Treasury yields which curbed demand on the precious safe-haven metal, with investors also eyeing talks between Russia and Ukraine.

Ukrainian and Russian diplomats are talking in Istanbul on Tuesday on different issues including a ceasefire and peace agreement draft.

During the continuous Russia’s invasion of its neighbor for over a month, gold is seen as a secure store of value, or safe-haven.

On the other hand, US treasury yields on the benchmark 10-year note rose near their highest level in three years.

The yellow metal is sensitive to higher interest rates, particularly in the United States as the Federal Reserve signaled recently at quicker rate hikes than previously expected.

Spot gold was down 1.5% or $29.4 to trade at $1910.40 per ounce by 1125 GMT.