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Title: Gold Down, but Near Eight-Month High as Ukraine Tensions Remain High


Feb 20, 2022 10:07PM ET


By: AnalysisWatch


Gold fell in Asia on Monday morning but was near an eight-month high as rising geopolitical tensions over Ukraine prompted investors to seek safe-haven assets.


At 10:02 p.m. EDT, gold futures were down 0.01 percent at $1,899.65.


The yellow metal just ended three consecutive weeks of gains, helped by growing concerns over Russia's invasion of Ukraine. The U.S. warned that the invasion could potentially include several cities in Ukraine, including the capital Kyiv.


U.S. President Joe Biden said on Friday that an invasion could come "within days," which Russia continues to deny. Russian Foreign Minister Sergei Lavrov is meeting US Secretary of State Antony Blinken in Europe this week, and Biden and Russian President Vladimir Putin have also reportedly agreed "in principle" to hold a summit.


The move to safe havens has been outweighed by concerns over a possible interest rate hike by the US Federal Reserve. Federal Reserve Governor Lael Brainard and Federal Reserve Bank of New York Governor John Williams, as well as Federal Reserve Bank of Chicago Governor Charles Evans, have indicated over the past week that they would like to start raising interest rates. However, they did not call for a hike, not even one step before the next scheduled central bank meeting.


Meanwhile, Fed President Michelle Bowman and her colleagues, including Loretta Mester and Raphael Bostic, will speak later in the day on Thursday.


In other central bank news, the People's Bank of China's benchmark lending rates will be released later in the day. The Reserve Bank of New Zealand will publish its policy decision on Wednesday, and Bank of England Governor Andrew Bailey will address the Treasury Committee on the same day. The Bank of Korea will publish its policy decision on Thursday.

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