Gold rose on Wednesday, buoyed by a weaker dollar and a slight pullback in U.S. bond yields, while investors awaited more details from Russia-Ukraine talks in Turkey.
On Tuesday, gold prices dropped as much as 1.8% to their lowest level since February 28 on signs of progress in negotiations between Russia and Ukraine before recovering to close only 0.2% lower on the day.
"The war premium seems to be eroding out of the gold price to some extent," independent analyst Ross Norman said, adding gold's strong bounce off $1,890 was encouraging.
Russia on Tuesday pledged to cut down on military operations around Kyiv and in northern Ukraine. However, Ukraine and its Western allies dismissed a Russian military pullback from near Kyiv as a ploy to refit troops after heavy losses.
City Index senior market analyst Matt Simpson said investors remain wary of Russia's intentions.
The U.S. dollar fell 0.6% to a near two-week low against its rivals, making greenback-priced gold less expensive for other currency holders.
Yields on the benchmark U.S. 10-year Treasury note also eased, reducing the opportunity cost of holding zero-yield bullion.
The U.S. Treasury yield curve inverted on Tuesday for the first time since 2019, as investors priced in an aggressive rate-hiking plan by the Federal Reserve as it attempts to bring inflation down from 40-year highs.
Meanwhile, spot silver rose 0.45% to $24.86 per ounce, while platinum edged 0.78% higher. Palladium gained 5.39% to $2,264.91 after dipping to a more than two-month low of $2,032.97 in the last session.