Gold prices rose on Monday to their
highest since mid-March, as the Russia-Ukraine crisis soured
Risk sentiment and drove investors to the safety of bullion.
Spot gold was up 0.5% at $1,984.51 per ounce, as of
0445 GMT, hitting its highest since March 14. US gold futures
were up 0.7% at $1,988.10.
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
liquidity could possibly exaggerate price action.
Ukrainian authorities condemned Russian artillery attacks on
cities in the northeast and the continuing siege of the southern
port city of Mariupol, of which Moscow said it had taken almost
full control, following almost two months of bloody fighting.
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,
Restraining advances in zero-yield gold on Monday, yields on
the benchmark 10-year US Treasury note firmed to
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 economic activity slowed in March, with weakness in
consumption, property and exports eclipsing faster-than-expected
first-quarter GDP growth, suggesting a worsening in the outlook
as sweeping COVID-19 curbs and the Ukraine war take a toll.
Spot silver rose 0.4% to $25.79 per ounce, platinum
gained 1.1% to $1,000.82, and palladium climbed
1.6% to $2,406.93.
(Reporting by Bharat Govind Gautam in Bengaluru; Editing by