Gold rises with Russia-Ukraine situation in focus

[BENGALURU] Gold prices rose on Friday (Fab 25), steadying after a volatile session, as investors reassessed the situation surrounding Russia's invasion of Ukraine and fresh sanctions against Moscow from the West.

Spot gold rose 0.3 per cent to US$1,909.06 per ounce by 2.04 am GMT. US gold futures fell 0.8 per cent to US$1,910.70.

The metal jumped more than 3 per cent on Thursday to hit its highest level since September 2020 at US$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 2.

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.

US 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 per cent this year, while gold has gained about 4.5 per cent.

Auto-catalyst metal palladium gained 1.4 per cent to US$2,435.77, after reaching its highest level since July 2021 at US$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 per cent to US$24.33 per ounce, platinum was up 0.4 per cent to US$1,061.40. REUTERS