Gold rises as escalating Ukraine crisis spurs safe-haven bids

[BENGALURU] Gold prices rose on Thursday (Feb 24) towards a 9-month high hit earlier this week, as investors sought refuge in safe havens after Ukraine declared an emergency and the West imposed more sanctions on Russia for sending troops into eastern Ukraine.

Spot gold rose 0.3 per cent to US$1,912.40 per ounce by 12.35 am GMT, after having hit its highest since Jun 1 at US$1,913.89 per ounce on Tuesday. US gold futures climbed 0.2 per cent to US$1,913.20.

Separatists in Ukraine asked for Russian help to repel "aggression" on Wednesday and Kyiv announced compulsory military service and a state of emergency as the West slapped more sanctions on Moscow in a bid to stop an all-out invasion.

The United States on Wednesday imposed sanctions on the company in charge of building Russia's Nord Stream 2 gas pipeline, expanding penalties on Moscow after it recognised 2 breakaway regions in eastern Ukraine.

The rouble plunged more than 3 per cent as the European Union blacklisted Russian lawmakers, freezing their assets and banning travel. Wall Street slipped on news of security measures taken by Ukraine's government on Wednesday.

Auto-catalyst metal palladium was little changed at US$2,483.51, hovering close to a near 6-month peak hit on Wednesday.

Russia is the world's third-largest producer of gold, while the country's Nornickel is also a major producer of palladium and platinum, both of which are used in catalytic converters to clean car exhaust fumes.

Russia produced 2.6 million troy ounces of palladium last year, or 40 per cent of global mine production, and 641,000 ounces of platinum, or about 10 per cent of total mine production.

Spot silver was up 0.1 per cent at US$24.55 per ounce, platinum rose 0.1 per cent to US$1,093.15. REUTERS