Gold prices eased on Thursday as a rebound in U.S. Treasury yields tempered bullion’s safe-haven demand stemming from the Ukraine crisis and its potential impact on the global economy.

Spot gold was down 0.3% at $1,951.76 per ounce, as of 0300 GMT. U.S. gold futures were down 0.1% at $1,954.50.

Benchmark U.S. 10-year Treasury yields inched up after they fell from three-year highs on Wednesday.

U.S. bond yields have marched higher on expectations that the Federal Reserve will aggressively hike interest rates as inflation accelerates at its fastest pace in 40 years.

Gold is highly sensitive to rising short-term U.S. interest rates and higher yields, which increase the opportunity cost of holding zero-yield bullion.

“As the critical level of $2,000 wasn’t broken, people have probably decided to take profits … and move funds out to equities or even short-term treasury bills,” said Brian Lan, managing director at dealer GoldSilver Central.

Lan said gold would look to consolidate in the near-term and is currently doing so at around $1,940-$1,960 per ounce.

Earlier this week, gold came within striking distance of the key $2,000 level as concerns around the Russia-Ukraine conflict and rising inflationary pressures increased safe-haven bids.

“Geopolitical risk and inflation pressure are currently the two primary drivers for the gold market. An aggressive Fed rate hike of 75 bps could be a short-term price damper, while elevated inflation due to supply shocks could mitigate the negative impact,” ANZ research said in a note.

The dollar also strengthened after dropping in the previous session, making greenback-priced gold less attractive for other currency holders.

Spot silver dipped 0.4% to $25.07 per ounce, platinum was flat at $986.86, and palladium slipped 0.2% to 2,446.17.