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At a three-month high gold with a boost from uncertainty in Ukraine

Gold futures traded at a three-month high on Monday as fears of a possible Russian invasion of Ukraine sparked demand for safe-haven assets.

“Comments from US officials late last week suggesting that an invasion of Ukraine from Russia was imminent put the markets at a dead end,” David Russell, marketing director at GoldCore, told MarketWatch. Oil prices continued to rise, “giving gold the impetus to break the upward resistance” at levels of $ 1,855 to $ 1,860.

The dynamic market continued on Monday, but “any easing of rhetoric about the Ukraine / Russia situation will certainly restore a stock supply (in the short term) and may restrict the flow of oil,” which could lead to a drop in gold. below the resistance level in the short term, “he said.” Further escalation of tensions is sure to keep gold high. ”

The gold endured, however, after Russian Foreign Minister Sergei Lavrov, speaking at a meeting with Russian President Vladimir Putin on Monday, suggested that Moscow continue to hold talks with NATO and the European Union.

Gold for April delivery gained $ 27.30, or 1.5 percent, to $ 1,869.40 an ounce after trading at $ 1,872.80, the highest price since Nov. 17, according to FactSet. .

Russell had said that a close above $ 1,865 to $ 1,870 “would see investors look at $ 1,900. However,” the news cycle is fast at the moment and gold will be sensitive to changing tones, “he warned. .

March delivery was up 48 cents, or 2.1 percent, at $ 23,848 an ounce.

Markets are responding to geopolitical fears “by seeking safe havens, in a dynamic that strongly supports the precious metal,” Ricardo Evangelista, senior market analyst at ActivTrades, said in a statement.

In other metal trades on Comex, March copper gained less than 0.1% to $ 4,508 a pound. April platinum gained 0.9% to $ 1,028 an ounce and palladium in March added almost 7% to $ 2,346 an ounce.

Source: Capital

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