Title: Gold Down, Focus Remains on Ukrainian Conflict

Feb 24, 2022 11:19PM ET

By: AnalysisWatch

After a rollercoaster ride the previous day, the gold price fell in Asia on Friday morning. Investors continue to assess the situation surrounding the Russian invasion of Ukraine on Thursday and further Western sanctions against Russia.

Gold futures fell 0.53% to $1,916.10 by 11:16 a.m. ET. The yellow metal, considered a safe haven, climbed more than 3% on Thursday to reach $1,973.96, its highest level since September 2020 but closed lower at the end of the session.

Ukrainian President Volodymyr Zelensky pledged to stay in Kyiv on Friday. Ukrainian forces continue to fight the Russian invasion, the biggest attack on a European state since World War II.

US President Joe Biden imposed more sanctions on Russia to hamper the country's ability to do business in major currencies. The US has already imposed sanctions on Russian banks and state-owned companies.

On investors' radar are central banks and their policies. The US Federal Reserve is expected to raise interest rates in March 2022, while the European Central Bank said the conflict in Ukraine could delay but not prevent the start of asset tapering.

According to Governor Adrian Orr, the Reserve Bank of New Zealand wants to raise interest rates as soon as possible to curb inflation and avoid even more monetary tightening in the future.

Meanwhile, exchange-traded funds that invest in gold and other precious metals saw massive inflows as investors fled to safer assets.

Palladium is up nearly 28% year to date in 2022, while gold is up about 4.5%. Palladium rose 1.4% after hitting $2,711.18 on Thursday, its highest level since July 2021, while platinum gained 0.4% and silver 0.5%.