Gold faced resistance at $1780 and temporarily retreats

On Thursday gold prices fell from the key resistance level due to the decreasing demand for the metal as a safe amid waning fears over intensifying conflict in Eastern Europe. 

Furthermore, an element of profit taking was evident in gold prices after strong gains over four of the past five sessions, Investing.com reported. 

During the last sessions the price of the yellow metal grew amid the dollar decline due to hopes for less "hawkish" position of the Fed, especially when inflation data in the USA turned out to be softer than it was forecast and demonstrated the easing of price pressure.

Additionally, many Federal Reserve officials supported the idea of lowering the pace of rate hikes to prevent a possible recession. The markets estimate the probability that the Fed will raise rates in December by a comparatively small amount of 50 basis points, more than 90%. 

Rising interest rates have had the biggest impact on gold prices this year, as rising yields have driven up the costs associated with holding the yellow metal. However, analysts believe that the metal has a more favorable outlook thanks to lower inflation in the U.S. 

Analysts at Oanda wrote in their note that the declines were light and there is still an upward trend. The break-through of $1,780 may become a catalyst of the next surge and in the process dispel all doubts concerning the long-term rally. Provided both the U.S. inflation publications have yet to do so.