Gold rises with Russia-Ukraine situation in focus

February 25, 2022: Gold prices rose on Friday, steadying after a volatile session, as investors reassessed the situation surrounding Russia's invasion of Ukraine and fresh sanctions against Moscow from the West.

FUNDAMENTALS

Spot gold rose 0.3% to $1,909.06 per ounce by 0204 GMT. U.S. gold futures fell 0.8% to $1,910.70.

The metal jumped more than 3% on Thursday to hit its highest level since September 2020 at $1,973.96, before reversing course to close lower.

On Friday, Ukrainian President Volodymyr Zelenskiy vowed to stay in Kyiv as his troops battled Russian invaders who are advancing toward the capital in the biggest attack on a European state since World War Two.

Commodity prices jumped to multi-year highs on Thursday, buoyed by prospects of tighter supplies due to the possibility of more sanctions on Russian exports, transport disruptions and Moscow withholding supplies.

U.S. President Joe Biden hit Russia with a wave of sanctions, measures that impede Russia's ability to do business in major currencies, along with sanctions against banks and state-owned enterprises.

Exchange-traded funds (ETFs) that invest in gold and other precious metals have seen massive inflows as investors rush to shield themselves.

Palladium prices are up nearly 28% this year, while gold has gained about 4.5%.

Auto-catalyst metal palladium gained 1.4% to $2,435.77, after reaching its highest level since July 2021 at $2,711.18 on Thursday.

Russia's Nornickel is a major producer of palladium and platinum, which are both used in catalytic converters to clean car exhaust fumes.

Spot silver rose 0.5% to $24.33 per ounce, platinum was up 0.4% to $1,061.40.

Reuters