Gold hits 1-month high as Ukraine crisis weakens risk appetite
Gold prices rose to their highest level since mid-March on Monday as the Russia-Ukraine crisis heightened risk sentiment and drove investors to the safety of bullion.
Spot gold rose 0.5% to $1,984.58 an ounce, by 0202 GMT, hitting its highest level since March 14. US gold futures rose 0.7% to $1,987.70.
There seems to be a bit of risk aversion in the market, with some overhang from the Russian-Ukrainian situation, Ilya Spivak, currency strategist at DailyFX, said while warning that low liquidity could possibly exaggerate the evolution of prices.
Ukrainian soldiers resisted a Russian ultimatum to lay down their arms on Sunday in the pulverized port of Mariupol, which Moscow said its forces had almost completely seized in what would be its biggest prize of the nearly two-month war.
Bullion is considered a safe store of value in times of political and economic crisis.
Gold posted its second consecutive weekly gain on Thursday, buoyed by safe-haven demand amid the Ukraine crisis and soaring inflation. Most markets were closed on Friday for a public holiday.
Capping zero-yield gold’s advances on Monday, yields on the benchmark 10-year U.S. Treasury firmed to their highest level since December 2018. [US/]
While another test of $2000 is likely the path of least resistance for gold, $2100 is the most important and powerful number to watch as there are significant spikes that need to be overcome. to make the case for sustainable gains, Spivak says.
Meanwhile, China’s economy grew at a faster-than-expected pace in the first quarter, official data showed on Monday, growing 4.8% year-on-year, but the risk of a slowdown brutal over the next few months has increased due to COVID-19. curbs and the war in Ukraine are taking their toll.
Spot silver rose 0.7% to $25.87 an ounce, platinum gained 1.2% to $1,001.57 and palladium climbed 1.6% to 2,406.85 $.
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