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Thursday, December 7, 2023

Gold Up, Set for Best Week in Nine as Ukraine Conflict Drags On

Gold Up, Set for Best Week in Nine as Ukraine Conflict Drags On

By Gina Lee

Investing.com – Gold was up Monday morning in Asia, rising more than 1% and set for its best monthly gain in nine. Investors digested the new, tough sanctions doled out by Western countries in response to Russia’s invasion of Ukraine, while Russian President Vladimir Putin put his country’s nuclear deterrent on high alert.

Gold futures jumped 1.29% to $1,912 by 10:08 PM ET (3:08 AM GMT). The yellow metal jumped as much as 2.2% earlier in the session, remaining near its September 2020 peak, and has gained about 6.3% in February to date.

The U.S. warned that Putin was escalating the war with “dangerous rhetoric.” Signs are emerging that the invasion is getting bogged down, with the expected quick victories replaced by a stronger-than-anticipated Western response.

In the latest developments on sanctions against Russia, the U.S. and Europe on Saturday blocked big Russian banks from the SWIFT global payments system. The two countries also announced other measures to prevent Russian access to a reported $630 billion war chest.

More European nations and Canada shut their airspace to Russian aircraft on Sunday.

The Central Bank of the Russian Federation (Bank of Russia) said on Sunday said it would resume buying gold on the domestic market when markets open later in the day. The central bank is also taking measures to try and ensure the country’s financial stability.

Meanwhile, the Bank of Canada and the Reserve Bank of Australia will hand down their policy decisions throughout the week.

In other precious metals, palladium jumped 5.9% to $2,506.55 and was set for a third consecutive monthly rise. It hit its highest level since July 2021, or $2,711.18, during the previous week. Silver gained 0.4% and platinum rose 0.7%.

Source: Investing.com

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