Bengaluru, The Indonesia Post – Gold prices hit a nearly nine-month high in Asian trade on Tuesday morning, after Russia ordered its troops into the breakaway region of eastern Ukraine, boosting demand for the safe-haven metal.
Spot gold rose 0.2 percent to trade at 1,909.54 dollars per ounce at 0035 GMT, after hitting its highest level since June 1 at 1,913.89 dollars an ounce earlier. US gold futures rose 0.7 percent to trade at 1,913.60 dollars per ounce.
Russian President Vladimir Putin recognized the two breakaway regions of eastern Ukraine as independent territories on Monday (21/2/2022) and ordered the Russian Army to launch what Moscow calls a peacekeeping operation into the region, accelerating a crisis the West fears could sparked a great war.
Oil prices surged to a seven-year high, safe-haven currencies rallied and US stock futures dived.
US President Joe Biden signed an executive order banning trade and investment between US individuals and the two breakaway territories in eastern Ukraine, the White House said.
Yields on the benchmark 10-year US Treasury slipped on the back of the Ukraine crisis and bets on a US Federal Reserve (Fed) rate hike, moving away from more than two-year peaks hit last week.
Fed officials agree that with inflation tightening its grip on the economy and strong jobs, it’s time to raise interest rates, but that any decision will hinge on meeting-by-meet inflation analysis and other data.
While gold is considered a hedge against inflation and geopolitical risk, rising interest rates will increase the chances of losing holding non-yielding gold.
Prices of other precious metals in the spot market, silver rose 0.4 percent to trade at 24.03 dollars an ounce, platinum gained 0.5 percent to trade at 1,080.03 dollars an ounce, and palladium rose 0.5 percent. to trade at 2,399.41 US dollars per ounce. (mhn/bbs)
Comment