Gold prices inched down on Wednesday despite retreating US Treasury bond yield and a weaker dollar. As of 1320 hours GMT, gold in the international market was available at $1,852.10 per ounce, shedding $2. Out of $2 per ounce decrease, +$1.85 was due to the dollar’s weakness and -$3.85 was due to predominant sellers. The price of 10 grams of yellow metal in Pakistan, meanwhile, remained flat at Rs105,000. Gold in the local market was available at the same rate on Tuesday. According to experts, the market sentiment remains cautiously optimistic amid prospects of a potential de-escalation of geopolitical tensions between Russia and Ukraine. However, US President Joe Biden’s comments keep investors reassessing the looming geopolitical risks. Biden said that he remains over the Russian troops’ withdrawal from the Ukrainian border, citing that Russia will invade Ukraine because its troops remain in a “threatening position.” Gold price rallied hard to three-month highs of $1,880 in the first half of Tuesday, as markets fretted over the Ukrainian situation, with US and NATO leaders urging de-escalation. However, in the European trading, gold price took a 360-degree turn and fell like a pack of cards amid a sudden shift toward the risk-on trades, as the Russian military said that a number of drills have finished and that the troops are expected to return to bases. The bright metal eroded all of its shine and tumbled to $1,845, the lowest levels so far this week. The risk rebound-led rally in the global stocks further weighed negatively on the safe-haven gold. From a technical perspective, the Relative Strength Index (RSI) on the daily chart still holds comfortably above the central line, despite the recent slump in prices, suggesting that the bullish potential remains intact. On the downside, immediate support is seen at $1,842. If this support is breached, then a drop towards 21-Daily Moving Average (DMA) at $1,830 cannot be ruled out. A convincing break below the latter might trigger some long-unwinding trade and accelerate the corrective pullback towards the next relevant support near the $1,819 region. On the flip side, the $1,857 seems to be the first resistance for the gold bulls. If gold breaks this resistance, then the next level will be around $1,866. However, some follow-through strength towards next resistance at $1875, which is November’s highs, remains a distinct possibility.