Gold prices at highest level since March amid fears over Ukraine

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Gold prices at highest level since March amid fears over Ukraine

The Russia-Ukraine crisis has led to a rise in risk sentiment and drove investors to the safety of bullion, as it has gone up since mid-March.

Spot gold was up 0.5% at $1,984. The 58 per ounce was at its highest since March 14, hitting its highest since March 14. The U.S. gold futures were up 0.7% to $1,987. Ilya Spivak, a currency strategist at DailyFX, said there was a bit of risk aversion in the market, with some overhang from the Russia-Ukraine situation.

Ukrainian soldiers resisted a Russian ultimatum to lay down arms in the pulverised port of Mariupol, which Moscow said it had almost completely seized in what would be its biggest prize of the nearly two-month war.

Bullion is considered a safe store of value during times of political and economic crisis.

Gold posted its second straight week's gain on Thursday, buoyed by safe-haven demand amid the Ukraine crisis and soaring inflation. Most of the shops were closed on Friday for a holiday.

The yields on the benchmark 10 year U.S Treasury note fell to their highest since December 2018 as investors retreated in zero-yield gold on Monday. While a test of $2,000 is likely to be the path of least resistance for gold, $2,100 is the bigger, more potent figure to keep an eye on, as there are some meaningful peaks that need to be overcome to make the case for lasting gains, Spivak said.

China's economy grew at a faster than expected pace in the first quarter, according to official data released on Monday, expanding 4.8% year-on-year, but the risk of a slowdown over the coming months has risen as the COVID 19 curbs and the Ukraine war take a toll.

The spot rose 0.7% to $25.87 per ounce, platinum gained 1.2% to $1,001. 57, and palladium climbed 1.6% to $2,406.