Title: Gold Up, Set for Best Week in Nine as Ukraine Conflict Drags On
Feb 27, 2022 10:13PM ET
Gold prices jumped more than 1% in Asia on Monday morning, recording their best monthly advance in nine months. Investors stomached tough new sanctions introduced by Western countries in reaction to Russia's invasion of Ukraine, while Russian President Vladimir Putin put his country's nuclear deterrent on high alert.
At 10:08 p.m. ET, gold futures were up 1.29% at $1,912. The yellow metal had previously risen as much as 2.2%, remaining close to its September 2020 peak, and is now up 6.3% in February.
The US warned that Putin was escalating the war with "dangerous rhetoric". There are signs that the invasion is being delayed and the expected quick victories are being replaced by a stronger than expected response from the West.
In the latest developments in sanctions against Russia, the US and Europe on Saturday barred major Russian banks from the SWIFT global payments system. The two countries also announced further measures to prevent Russia from accessing a $630 billion war chest.
Other European countries and Canada closed their airspace to Russian aircraft on Sunday.
The Central Bank of the Russian Federation said on Sunday that it would resume buying gold on the domestic market as soon as markets open later in the day. The central bank is also taking measures to ensure the country's financial stability.
Meanwhile, the Bank of Canada and the Reserve Bank of Australia will announce their monetary policy decisions later this week.
In other precious metals, palladium rose 5.9% to $2,506.55 and was on track to post its third consecutive monthly gain. The previous week, it had reached $2,711.18, its highest level since July 2021. Silver gained 0.4% and platinum rose 0.7%.