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Gold prices rose on Monday, with worries around the Russia-Ukraine crisis powering the gains.
Spot gold climbed 0.6% to $1,871.71 per ounce. U.S. gold futures rose 1.7% to $1,873.80. Monday’s moves came after after the precious metal popped on Friday.
Traders piled into gold and dumped riskier assets like equities. The Dow Jones Industrial Average fell 367 points, or 1.1%. The S&P 500 also lost 1%.
On Monday, Reuters reported that Russian Foreign Minister Sergey Lavrov had advised Russian President Vladimir Putin seek a diplomatic solution to the crisis.
Russia is demanding that Ukraine be denied NATO membership, adding it wants the organization to scale back its presence in Eastern Europe. Meanwhile, U.S. national security advisor Jake Sullivan said over the weekend that a Russian attack on Ukraine could happen any day.
U.S. Secretary of State Antony Blinken ordered the American embassy in Kyiv, Ukraine, closed. He cited a “dramatic acceleration in the buildup of Russian forces” on Ukraine’s border for the closure.
Gold prices have enjoyed a solid start to 2022, with futures rising more than 2%, as traders brace for tighter Federal Reserve policy.
“Gold is starting to get its groove back as some investors are seeking protection against an overly aggressive Fed tightening cycle that could threaten growth,” Oanda’s Edward Moya wrote last week. “Gold could rally above the $1900 level if troop movements occur.”
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