Business Standard

Gold prices jump over 2% as Russian troops attack Ukraine

Spot gold XAU= climbed 1.7% to $1,939.97 per ounce by 0611 GMT, after hitting its best level since January 2021 at $1,948.77

Photo: Andrey Rudakov/Bloomberg

By Asha Sistla
(Reuters) - Gold prices on Thursday jumped over 2% to their highest in more than a year, with investors flocking to safe havens as Russian forces invaded Ukraine after President Vladimir Putin authorised what he called a special military operation.
Spot gold XAU= climbed 1.7% to $1,939.97 per ounce by 0611 GMT, after hitting its best level since January 2021 at $1,948.77. U.S. gold futures GCv1 rose 1.8% to $1,943.90.
Russian forces fired missiles at several Ukrainian cities and landed troops on its south coast, officials and media said. (Full Story)
Gold, considered a safe store of value during uncertain times, has risen about 8% in February so far as the Russia-Ukraine crisis walloped risk appetite. The metal is headed for its best monthly performance since July 2020.
"Gold is a haven asset along with the U.S. dollar and this is its day. We could inevitably see new all time highs in gold," said Jeffrey Halley, a senior market analyst at OANDA.
Prices could continue rallying towards resistance at $1,960 an ounce and test $2,000 in the next few sessions, Halley added.
Russia is the world's third-largest producer of gold, while the country's Nornickel GMKN.MM is also a major producer of palladium and platinum.
Spot silver gained 2.1% to $25.03 per ounce, platinum XPT= rose 1% to $1,102.43, and palladium XPD= added 1.3% to 2,514.54.
The dollar and oil prices also rocketed higher, while global stocks and U.S. bond yields dived. MKTS/GLOB O/R
Stephen Innes, managing partner at SPI Asset Management, said "it's just not the fog of war for gold, but also inflation", especially with oil hitting $100 a barrel, and that's why gold is becoming a defensive product.
"There is a shift into gold for hedging relatively cheap, believe it or not, at this price," Innes added.
(Reporting by Asha Sistla and Bharat Govind Gautam in Bengaluru; Editing by Devika Syamnath)

(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 24 2022 | 1:52 PM IST

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