Gold climbs to 1-month high as Ukraine crisis drags on

Gold climbs to 1-month high as Ukraine crisis drags on

Gold prices jumped about 1% to a more than one-month high on Monday as concerns over the economic fallout from the Russia-Ukraine war and surging inflation drove investors to the safe-haven asset. Spot gold was trading at $1,993.28 per ounce as of 0947 GMT, its highest level since March 11. U.S. gold futures jumped 1.2% to $1,997.70 per ounce.

"Bullion's upward momentum is set to continue as long as markets are fed with a steady stream of negative headlines pertaining to a darkening global outlook," said Han Tan, chief market analyst at Exinity. The war in Ukraine has so far showed no signs of easing and has added to soaring inflation and dampened global growth outlook. Several big Wall Street banks have raised concerns the U.S. Federal Reserve's aggressive policy tightening measures could bring about a recession as they work their way through the economy. China's economy slowed in March as consumption, real estate and exports were hit hard, as sweeping COVID-19 curbs and the Ukraine war took a toll in the world's top gold consumer.

"From a technical perspective, spot gold may face little resistance once it goes north of $2,000... However, gold's ability to keep its head above $2000 may