Gold near 19-month high amid Ukraine crisis
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Gold near 19-month high amid Ukraine crisis

Gold near 19-month high amid Ukraine crisis

Bullion has gained 12 per cent this year

Gold held near a 19-month high following a ban on Russian oil imports, as mounting concerns over inflation and economic growth boost demand for the haven asset.

Bullion has gained 12 per cent this year and is closing in on a record as investors seek a store of value amid the threat of an inflationary shock to the global economy. Holdings in gold-backed exchange-traded funds have climbed to the highest since March 2021, with inflows of about 130 tons this year, according to initial data compiled by Bloomberg.

The impact of the war in Ukraine and sanctions on Russia have reverberated across the globe, driving commodities higher on supply woes. The latest move by the US and the UK to ban Russian oil imports has stoked further fears over intensifying price pressures as costs of raw materials such as food, energy and metals costs surge.

Spot gold slipped 0.3 per cent to $2,045.67 an ounce at 7.46am in Singapore. Prices touched $2,070.44 on Tuesday, just $5 short of an all-time high reached in August 2020.

Palladium advanced 3.5 per cent on concerns over potential supply disruptions as Russia produces about 40 per cent of the metal mined globally. Silver and platinum rose.

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