Gold prices hit 1-month high as Ukraine crisis dulls risk appetite

Article content

Gold prices rose on Monday to their

highest since mid-March, as the uncertainty surrounding the

Russia-Ukraine conflict dampened risk sentiment and drove

investors towards the safety of bullion.

Spot gold was up 0.8% at $1,989.65 per ounce, as of

0723 GMT, hitting its highest since March 11. U.S. gold futures

were up 0.9% at $1,993.40.

Seems like there is a bit of risk aversion in the market,

with some overhang from the Russia-Ukraine situation, said Ilya

Spivak, a currency strategist at DailyFX, while cautioning thin

Article content

liquidity could possibly exaggerate price action.

Ukrainian authorities said missiles struck Lviv early on

Monday and explosions rocked other cities as Russian forces kept

up their bombardments after claiming near full control of the

strategic southern port of Mariupol.

Bullion is considered a safe store of value during times of

political and economic crisis.

While another test of $2,000 is likely the path of least

resistance for gold, $2,100 is the bigger, more potent figure to

keep an eye on, as there are some meaningful peaks there that

would need to be overcome to make the case for lasting gains,

Spivak said.

Restraining advances in zero-yield gold on Monday, yields on

the benchmark 10-year U.S. Treasury note firmed to

Article content

their highest since December 2018.

Spot gold may rise into a range of $1,998 to $2,012, as it

has pierced above a resistance at $1,984 per ounce, according to

Reuters technical analyst Wang Tao.

China’s economy slowed in March as consumption, real estate

and exports were hit hard, taking the shine off

faster-than-expected first-quarter growth numbers and worsening

an outlook already weakened by COVID-19 curbs and the Ukraine

war.

Spot silver rose 0.7% to $25.85 per ounce, platinum

gained 1.7% to $1,006.27, and palladium climbed

1.4% to $2,400.60.

(Reporting by Bharat Govind Gautam in Bengaluru; Editing by

Sherry Jacob-Phillips)