Gold rises with Russia-Ukraine situation in focus

Gold prices rose on Friday, steadying

after a volatile session, as investors reassessed the situation

surrounding Russia’s invasion of Ukraine and fresh sanctions

against Moscow from the West.

FUNDAMENTALS

* Spot gold rose 0.3% to $1,909.06 per ounce by 0204

GMT. U.S. gold futures fell 0.8% to $1,910.70.

* The metal jumped more than 3% on Thursday to hit its

highest level since September 2020 at $1,973.96, before

reversing course to close lower.

* On Friday, Ukrainian President Volodymyr Zelenskiy vowed

to stay in Kyiv as his troops battled Russian invaders who are

advancing toward the capital in the biggest attack on a European

state since World War Two.

* Commodity prices jumped to multi-year highs on Thursday,

buoyed by prospects of tighter supplies due to the possibility

of more sanctions on Russian exports, transport disruptions and

Moscow withholding supplies.

* U.S. President Joe Biden hit Russia with a wave of

sanctions, measures that impede Russia’s ability to do business

in major currencies, along with sanctions against banks and

state-owned enterprises.

* Exchange-traded funds (ETFs) that invest in gold and other

precious metals have seen massive inflows as investors rush to

shield themselves.

* Palladium prices are up nearly 28% this year, while gold

has gained about 4.5%.

* Auto-catalyst metal palladium gained 1.4% to

$2,435.77, after reaching its highest level since July 2021 at

$2,711.18 on Thursday.

* Russia’s Nornickel is a major producer of

palladium and platinum, which are both used in catalytic

converters to clean car exhaust fumes.

* Spot silver rose 0.5% to $24.33 per ounce, platinum

was up 0.4% to $1,061.40.

(Reporting by Asha Sistla in Bengaluru; Editing by Devika

Syamnath)