Tuesday, May 24

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


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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

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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,

Spivak said.

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

the benchmark 10-year US Treasury note firmed to

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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

Sherry Jacob-Phillips)

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