Gold hits 1-month peak as Ukraine, inflation lift appeal

Gold hits 1-month peak as Ukraine, inflation lift appeal

Gold prices hit a one-month high on Wednesday, as the Russia-Ukraine conflict boosted demand for safe-haven bullion while investors also bought it as a cushion against soaring inflation.

Spot gold rose 0.5% at $1,977.24 per ounce, as of 1127 GMT, after touching its highest since March 14 at $1,979.95. U.S. gold futures were up 0.2% at $1,979.20.

Safe-haven bids due to the Ukraine crisis and inflation concerns are supporting gold and could continue to do so, said Michael Hewson, chief market analyst at CMC Markets UK, adding prices could revisit $2,000 an ounce in the next few days.

Russian President Vladimir Putin on Tuesday said Russia would "rhythmically and calmly" continue its operation in Ukraine, and that on-off peace negotiations "have again returned to a dead-end situation for us". Meanwhile, data showed on Tuesday that U.S. monthly consumer prices surged in March, cementing the case for a 50 basis point interest rate hike from the Federal Reserve next month as it seeks to tighten pandemic-era monetary policy.

The data largely met market expectations, sending U.S. 10-year Treasury yields lower, and lifting zero-yield gold by more than 1% in the previous session. "The markets have been pricing in the Fed's new hawkish stance and the