The prices of gold recovered slightly on Wednesday on short-covering in the backdrop of rising U.S. bond yields and the strong dollar.

The value of spot gold declined by $2.70 and stood at $1,290.20 per ounce. This was the lowest price level of the precious yellow metal since December 2017.

The U.S. gold futures for June delivery were down by 0.18% at $1,288 per ounce.

A stronger dollar makes gold more expensive for holders of other currencies while rising U.S. yields tend to weigh on bullion's non-yielding appeal.

Gold and U.S. Dollars share inverse relationship and hence the fall in dollar value, will, in turn, increase the demand for commodities which also includes gold and its prices go up.

Asian markets finished lower today with shares in China leading the region. The Shanghai Composite is down by 0.71% while Japan's Nikkei 225 is down by 0.44% and Hong Kong's Hang Seng is down by 0.13%.

Investors believe that North Korea's decision to call off high-level talks with South Korea will have any kind of impact on gold prices across the globe.

The prices of gold were recorded at Rs 3,050 per gram for 22 karats and Rs 3,264 per gram for 24 karats in India.

The prices of other precious metals also tumbled slightly in the international market. Silver fell by 0.49% and stood at $16.22 per ounce.

Platinum declined by 0.66% and stood at $894.60 per ounce.

The prices of Palladium slumped by 0.36% to record at $981.40 per ounce.