Gold prices jumped about 1% to a more
than one-month high on Monday as concerns over the economic
fallout from the Russia-Ukraine war and surging inflation drove
investors to the safe-haven asset.
Spot gold was trading at $1,993.28 per ounce as of
0947 GMT, its highest level since March 11. US gold futures
jumped 1.2% to $1,997.70 per ounce.
“Bullion’s upward momentum is set to continue as long as
markets are fed with a steady stream of negative headlines
pertaining to a darkening global outlook,” said Han Tan, chief
market analyst at Exinity.
The war in Ukraine has so far showed no signs of easing and
has added to soaring inflation and dampened global growth
Several big Wall Street banks have raised concerns the US
Federal Reserve’s aggressive policy tightening measures could
bring about a recession as they work their way through the
China’s economy slowed in March as consumption, real estate
and exports were hit hard, as sweeping COVID-19 curbs and the
Ukraine war took a toll in the world’s top gold consumer.
“From a technical perspective, spot gold may face little
resistance once it goes north of $2,000… However, gold’s
ability to keep its head above $2000 may be strained once real
yields break into positive territory,” Tan added.
Bullion is considered a safe store of value during times of
political and economic crisis.
Restraining advances in zero-yield gold on Monday, yields on
the benchmark 10-year US Treasury note jumped to
their highest since December 2018, while the dollar stood strong
near recent highs.
Among other metals, spot silver rose 0.9% to $25.91
per ounce and hit an over one-month high. Platinum jumped
1.5% to $1,004.36 and palladium climbed 1.1% to
(Reporting by Eileen Soreng in Bengaluru, additional reporting
by Swati Verma; Editing by Amy Caren Daniel)