The gold price rose by more than 2% after Western countries tightened sanctions against Russia in response to the attacks on Ukraine. This stimulated demand for safe-haven assets.
Gold prices rose 2.2% to $1,930.85 per ounce.
Palladium climbed by up to 7.8% on fears of supply disruptions. Russia produces about 41% of the world’s palladium supply.
Silver and platinum rose by more than 1%.
The sanctions affect Russia’s central bank and the exclusion of some Russian banks from the SWIFT system, which handles trillions of dollars worth of transactions worldwide. The decision was announced Saturday in a joint statement by the United States, the European Commission, France, Germany, Italy, the United Kingdom and Canada.
The agreement also included measures to prevent the Bank of Russia from using international reserves to undermine sanctions. The Bank of Russia said it would start buying gold again about two years after the end of long-term purchases.
The price of gold bullion has risen to its highest level since May as the situation in Ukraine has deteriorated. In addition, gold is a hedge against inflation, which can be affected by rising wheat, energy and metal prices.
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Monday, February 28, 2022