Gold gains after Russia attacks Europe's largest nuclear plant

[BENGALURU] Gold rose on Friday (Mar 4), eyeing its best weekly gain since May 2021, as investors scrambled for safe-haven assets after Russia attacked a nuclear power plant in Ukraine - the largest of its kind in Europe.

Spot gold rose 0.6 per cent to US$1,946.41 per ounce by 1.00 am GMT and was on track for a weekly gain of about 3 per cent. US gold futures also rose 0.6 per cent to US$1,948.60.

The Zaporizhzhia nuclear power plant in Ukraine was on fire early on Friday after an attack by Russian troops, the mayor of the nearby town of Energodar said.

Russia has already captured the defunct Chernobyl plant, some 100 kilometres (km) north of Ukraine's capital, Kyiv.

Governments, including those of the United States and the European Union, have imposed sanctions on Russian individuals, companies, banks and the Russian central bank since the Kremlin sent troops into Ukraine on Feb 24.

The London Bullion Market Association (LBMA) told Reuters it has asked 6 Russian gold refiners it accredits if they have commercial links with sanctioned Russian entities and that such links, if found, could affect their accreditation.

Russia's finance ministry said on Thursday it was halting purchases of foreign currency and gold for this year as part of a suspension of parts of its fiscal rule relating to the use of extra oil and gas revenues.

Palladium gained 1.6 per cent to US$2,818.86, after hitting its highest level since mid-July 2021 at US$2,835.48 earlier in the session.

The auto-catalyst metal, used by automakers in catalytic converters to curb emissions, was all set to gain about 20 per cent - its best weekly rise since late-March 2020.

Spot silver was up 0.4 per cent at US$25.25 per ounce and set for a fifth consecutive weekly rise, while platinum rose 0.4 per cent to US$1,084.82. REUTERS