Title: Gold Up, Near Three-Month High as Ukraine Invasion Fears Linger

Feb 13, 2022 11:34PM ET

By: AnalysisWatch

Gold prices rose in Asia on Monday morning after hitting a near three-month high in the previous session. Concerns about a possible Russian invasion of Ukraine persist, limiting investors' appetite for risk.

Gold futures were up 0.63% to $1,853.65 an ounce at 11:31 p.m. ET, after reaching $1,865.15 an ounce in the previous session, the highest since Nov. 19, and the biggest daily gain since mid-October 2021.

US fears that a Russian invasion of Ukraine could be imminent sent Asia-Pacific stocks mostly lower and oil prices to a seven-year high. The news also boosted bonds and the euro came under pressure.

The US warned on Sunday that Russia could soon create a pretext for an invasion of its neighboring country. Russia, however, has rejected those accusations and accused the West of "hysteria," although it continues to deploy troops near its border with Ukraine.

The dollar, which normally moves in the opposite direction to gold, eased slightly on Monday, while the US 10-year Treasury bond also gained.

Meanwhile, data released on Friday showed that the Michigan consumer expectations index came in at 57.4 in February. Michigan's consumer sentiment index was at 61.7, its lowest level in more than a decade, as expectations that inflation will continue to rise in the near future continue to increase. However, given excess savings and a strong recovery in the labor market, these expectations are unlikely to affect spending.

The Federal Reserve will also release the minutes of its last meeting later this week.

In other precious metals, silver rose 0.7%, platinum gained 0.8%, and palladium rose 3.7%.