Business Standard

Gold hits near nine-month high as Russia-Ukraine crisis deepens

Russian President Vladimir Putin recognised two breakaway regions in eastern Ukraine as independent on Monday

Photo: Bloomberg

Photo: Bloomberg

Reuters
(Reuters) - Gold prices hit a near nine month-high on Tuesday, after Russia ordered troops into breakaway regions of eastern Ukraine, boosting demand for the safe-haven metal.
FUNDAMENTALS
* Spot gold was up 0.2% at $1,909.54 per ounce, as of 0035 GMT, after scaling its highest since June 1 at $1,913.89 per ounce earlier. U.S. gold futures gained 0.7% to $1,913.60.
* Russian President Vladimir Putin recognised two breakaway regions in eastern Ukraine as independent on Monday and ordered the Russian Army to launch what Moscow called a peacekeeping operation into the area, accelerating a crisis the West fears could unleash a major war.
* Oil jumped to a seven-year high, safe-havens rallied and U.S. stock futures dived. [MKTS/GLOB]
* U.S. President Joe Biden signed an executive order to prohibit trade and investment between U.S. individuals and the two breakaway regions of eastern Ukraine, the White House said.
* U.S. benchmark 10-year yields slipped on the back of the Ukraine crisis and U.S. Federal Reserve rate hike bets, moving away from a more than two-year peak hit last week. [US/]
* Fed officials agreed that with inflation tightening its grip on the economy and employment strong, it was time to raise interest rates, but also that any decisions would depend on a meeting-by-meeting analysis of inflation and other data.
* While bullion is considered a hedge against inflation and geopolitical risks, interest rate hikes would raise the opportunity cost of holding non-yielding bullion.
* Spot silver was up 0.4% at $24.03 per ounce, platinum rose 0.5% to $1,080.03 and palladium gained 0.5% to $2,399.41.
DATA/EVENTS (GMT)
0900 Germany Ifo Business Climate New
0900 Germany Ifo Curr Conditions New
0900 Germany Ifo Expectations New
1445 US Markit Mfg, Serv, Comp Flash PMIs
1500 US Consumer Confidence
 
(Reporting by Asha Sistla in Bengaluru; Editing by Rashmi Aich)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Feb 22 2022 | 9:01 AM IST

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