The theme is risk-off and safe-haven flows are helping the gold price.

Mid-week gold trading is more volatile because US stocks dropped sharply after Moscow announced plans to change its natural gas sales to certain countries to rubles. This has led to oil prices rising and global financial markets tensions increasing. The gold price was trading at $1,947.25 at the time of writing. The yellow metal rose from $1,915.64 lower in the day. It is now trading near its highest level of the day at $1,947.25.

Russia's President Vladimir Putin responded to Western sanctions, saying Moscow will pay roubles from "unfriendly" countries for gas sales. However, its forces have already bombed Kyiv, Ukraine, a month after their attack.

As tensions in Ukraine escalate, prices for commodities like oil and wheat have risen. This has added upward pressure to already high inflation caused by supply chain bottlenecks. Many central banks, including the US Federal Reserve have taken measures to control inflation, including raising interest rates. Despite the uncertainty surrounding war, safe-haven flows can be a boon for gold.

"Market participants are closely watching US 10-year US rates as they approach a channel that has been resisting for a long time and is proving difficult to break. Analysts at TD Securities said that gold prices have remained remarkably resilient despite the dramatic price movement in rates markets since Powell's comments.