On Tuesday, Gold futures increased as traders digested the impact of sanctions imposed by Western countries against Russia.
The safe-haven yellow metal edged up 0.94% or 17.80 points to $1,918.55. It reversed its loss of 0.60% to $1,900.70 during the previous session.
Then, the Spot Gold increased 0.67% or 12.69 points to $1,921.86. It followed its gain of 1.08% to $1,907.90.
The raft of penalties against Moscow raised concerns over global growth and inflation.
Over the weekend, the United States and its allies moved to block Russia’s access to its foreign reserves.
In addition, the West also cut the state from the SWIFT messaging system for global banking.
Consequently, Russian President Vladimir Putin announced his countermeasures by banning residents from transferring hard currency abroad.
On Monday, Russian and Ukrainian officials began ceasefire talks near the Belarusian border. However, there are still no signs that Russia intends to stop the invasion.
Accordingly, the Central Bank of the Russian Federation hiked its key policy rate to 20.00% yesterday. The bank has also introduced some capital controls.
Nevertheless, Governor Elvira Nabiullina explained that the sanctions had prevented the country from selling foreign currency to support the Ruble.
Meanwhile, investors widely expected the US Federal Reserve to raise interest rates.
Conversely, the Reserve Bank of Australia retained its interest rate at 0.10% as it released its latest policy decision.
Subsequently, the Bank of Canada will hand down its monetary policy on Wednesday.
Moreover, global disruptions to grain, energy, and metals supply fueled price pressures, benefitting Gold contracts.
Gold and other metals
Accordingly, Gold hit its most significant monthly advance in February, with a 6.50% gain. It soared to an 18-month high of $1,973.96 last week.
Analysts anticipated the yellow metal to surge again if inflationary pressures would threaten growth prospects.
Aside from the bullion, Palladium prices soared 2.72% or 67.67 points to $2,571.77. The move followed an upturn of 0.24% to $2,487.52 in the past session.
Notably, Russia accounts for 40.00% of the Palladium mined worldwide.
At the same time, Platinum elevated 1.83% or 19.05 points to $1,057.70. It recovered from its last drop of 1.63% to $1,045.20.
Eventually, contracts for Silver inched up 1.26% or 0.31 points to $24.67. The metal rebounded from a decline of 0.38% to $24.37 yesterday.
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