Apr 18, 2022 01:16AM ET
By: AnalysisWatch
Gold prices rose to the highest since mid-March on Monday as the Russia-Ukraine crisis clouded risk sentiment and drove investors to the safety of gold.
At 12:45 AM ET, spot gold prices were 0.5% higher at $1,984.51 per ounce, the highest since March 14. U.S. gold futures were 0.7% higher at $1,988.10 an ounce.
There appears to be some risk aversion in the market, with some overhang from the Russia-Ukraine situation, said Ilya Spivak, a currency strategist at DailyFX, while cautioning that thin liquidity may be exaggerating price action.
Ukrainian authorities condemned Russian artillery attacks on towns in the northeast and the ongoing siege of the southern port city of Mariupol, which Moscow says it has brought almost completely under control after nearly two months of bloody fighting.
Gold bullion is considered a safe store of value in times of political and economic crisis.
While a retest of the $2,000 level is likely the path of least resistance for gold, the $2,100 level is the bigger and stronger one to keep an eye on, as there are some significant peaks there that would need to be overcome to argue for lasting gains, Spivak said.
On Monday, U.S. 10-year Treasury bond yields rose to their highest level since December 2018, slowing the rise in zero-yielding gold.
According to Reuters technical analyst Wang Tao, spot gold prices could rise to a range of $1,998 to $2,012 after breaking through resistance at $1,984 per ounce.
Chinese economic activity slowed in March, with weakness in consumption, real estate and exports eclipsing faster-than-expected GDP growth in the first quarter, suggesting the outlook is deteriorating as sweeping COVID-19 curbs and the Ukraine war take their toll.
Spot silver increased by 0.4% to $25.79 per ounce, platinum increased by 1.1% to $1,000.82, and palladium increased by 1.6% to $2,406.93.
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