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Gold futures edged higher Wednesday, finding their footing as traders kept an eye on an increasingly hawkish Federal Reserve and monitored developments in the Russia-Ukraine war.

Gold for April delivery GC00, +0.35% GCJ22, +0.35% rose $8.20, or 0.4%, to $1,929.70 an ounce on Comex. May silver SIK22, +0.93% was up 25.6 cents, or 1%, at $25.16 an ounce.

Gold slipped Tuesday as Treasury yields pushed to another round of nearly three-year highs. Higher yields can raise the opportunity cost of holding nonyielding assets like precious metals. Yields have jumped as the Federal Reserve has signaled it will move to aggressively raise interest rates in an effort to rein in inflation running at a nearly 40-year high, with Fed Chairman Jerome Powell on Monday leaving the door open to lifting rates in increments of more than 25 basis points, or a quarter percentage point.

Meanwhile, Russian forces continued to escalate their bombardment of Ukraine cities. U.S. President Joe Biden was slated to hold summit meetings in Brussels on Thursday with NATO allies, Group of Seven leaders and the European Union that’s likely to produce further sanctions on Moscow.

Gold has managed to rebound from the lower limit of its short-term trading range around $1,915 an ounce and is trading near the previous “reaction area” of $1,930, said Walid Koudmani, chief market analyst at XTB, in a note.

“ While the geopolitical situation remains uncertain, any major events could once again spark a renewed interest for the safe haven asset which has benefited greatly from investor panic by nearing its all time high just a few weeks ago,” he wrote. “On the other hand, even if we were to see a pullback, it will be essential to see if the aforementioned support level will manage to hold once again or if the price will extend the downward move this time.”

Source: This post first appeared on http://marketwatch.com/

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