Gold perched near 3-month peak as Ukraine tensions spur demand

[BENGALURU] Gold prices held their ground on Monday (Feb 14) near a 3-month high touched in the previous session, as lingering concerns surrounding Ukraine kept the metal's safe-haven appeal intact.

Spot gold was steady at US$1,859.16 per ounce, as of 1.25 am GMT. In the previous session, bullion prices hit the highest since Nov 19 at US$1,865.15, in their biggest daily gain since mid-October.

US gold futures rose 0.9 per cent to US$1,859 per ounce.

Asian shares slipped as warnings from the United States that Russia could invade Ukraine at any time sent oil prices to 7-year peaks, boosted bonds and belted the euro.

Russia could create a surprise pretext for an attack, the United States said on Sunday. However, Moscow denies any such plans and has accused the West of "hysteria", even as it has more than 100,000 troops massed near Ukraine.

Pressuring gold slightly, the dollar and safe-haven currencies held gains, while yields on the benchmark US 10-year Treasury note edged higher.

Higher yields dent the appeal of bullion by raising the opportunity cost of holding non-interest-paying gold, while a firmer dollar makes it less attractive for overseas buyers.

Meanwhile, US consumer sentiment fell to its lowest level in more than a decade in early February amid expectations that inflation would continue to increase in the near term, but that was unlikely to derail spending against the backdrop of excess savings and a strengthening labour market recovery.

Among other metals, spot silver gained 0.7 per cent to US$23.74 per ounce, while platinum was up 0.8 per cent at US$1,036.14, and palladium jumped 3.7 per cent to US$2,391.73 per ounce. REUTERS