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Metals Stocks: Gold futures extend rise above $1,900 as flight to havens continues amid Russia’s Ukraine siege

Gold futures on Tuesday were climbing amid a broad flight to the perceived safety of precious metals and government bonds, as Russia forces pummeled Ukraine’s second-largest city Kharkiv in its dayslong effort to annex the Eastern European country, which risks unsettling the world order.

Moscow’s attempted takeover of Ukraine has entered its sixth day and drawn swift and severe financial sanctions from an array of Western nations, which has injected a fresh dose of turbulence in markets.

April gold
GC00,
+1.04%

GCJ22,
+1.04%

was trading $23.10, or 1.2%, at $1,923.60 an ounce, following a 0.7% gain on Monday, which contributed to its largest monthly gain, up 5.8%, since May. according to Dow Jones Market Data.

The gains for safe-haven gold also come as the yield on the 10-year Treasury note
TMUBMUSD10Y,
1.775%

 dropped to around 1.75%, compared with 1.836% at 3 p.m. Eastern on Monday.

Investors were weighing the implications of the invasion on the outlook for inflation and global growth, as well as how central banks, particularly the Federal Reserve, will respond.

In addition to bonds and gold, crude oil prices have shot higher, with West Texas Intermediate oil touching $100 a barrel
CL.1,
+4.22%
,
up 4.4%, stoking concerns of near-term inflation pressures, which is bullish for bullion.

“Events in Ukraine, following the Russian invasion, continue to dominate the mindset of investors, offering support to safe-haven assets and supporting gold well above the $1,900 mark,” wrote Ricardo Evangelista, senior analyst at ActivTrades, in a Tuesday note.

“It appears unlikely that there will be a solution for the conflict anytime soon, with the probability of an escalation in the intensity of the fighting over the next few days, which could create scope for further spikes in gold prices,” the analyst wrote.

Meanwhile, May silver
SIK22,
+1.43%

was trading 1.5%, or 35 cents, to around $24.73 an ounce, after ending February with an 8.8% rise.

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