Shafaq News/ Gold prices on Thursday jumped over 2% to their highest in more than a year, with investors flocking to safe havens as Russian forces invaded Ukraine after President Vladimir Putin authorised what he called a special military operation.
Spot gold was up 1.6% at $1,937.82 per ounce by 0511 GMT, after hitting its best level since Jan. 2021 at $1,948.77. U.S. gold futures rose 2% to $1,937.10.
Russian forces fired missiles at several Ukrainian cities and landed troops on its south coast, officials and media said.
In a tweet, Ukrainian Foreign Minister Dmytro Kuleba said Russia has launched a full-scale invasion of Ukraine and is targeting cities with weapons strikes.
Gold, considered a safe store of value during uncertain times, has risen about 8% in February so far as headlines on developments in the Russia-Ukraine crisis walloped risk appetite.
The precious metal is also headed for its best monthly gain since July 2020.
“Gold is a haven asset along with the U.S. dollar and this is its day. We could inevitably see new all time highs in gold,” said Jeffrey Halley, a senior market analyst at OANDA.
Prices could continue rallying towards resistance at $1,960 an ounce and test $2,000 in the next few sessions, Halley added.
Russia is the world’s third-largest producer of gold, while the country’s Nornickel is also a major producer of palladium and platinum.
Spot silver gained 1.6% to $24.91 per ounce, platinum rose 0.9% to $1,101.56, and palladium was up 1.4% at $2,516.39.
The dollar and oil prices also rocketed higher, while global stocks and U.S. bond yields dived.
“Any sanctions the West puts in place aren’t really going to affect Russia in the way the West is hoping ... the West is on the back foot here and that’s another good reason why gold is rising because it’s a true risk-off environment,” said Matt Simpson, senior market analyst at City Index.