Gold futures closed at the highest level since June on Wednesday, recovering from a fall in the previous session as markets reacted to fresh news of tensions between Russia and Ukraine.
"Geopolitical tensions around Ukraine have recently been a catalyst for the rise in gold prices to new highs in 2022," Sevens Report Research analysts wrote.
NATO saw no sign of a withdrawal of Russian troops from the border with Ukraine, and this means that the possibility of a Russian invasion of Ukrainian territory remains, which supports the gold market.
The influence of Russian-Ukrainian friction "may ease in the coming weeks, but fears that the US Federal Reserve is lagging behind inflation dynamics may continue to put upward pressure on gold prices over the next few sessions," the Sevens Report added. Research.
April gold futures closed up $15.30, or 0.8%, at $1,871.50 an ounce, the highest close since June 11. On Tuesday, quotes were marked by a decline for the first time in eight sessions.
During electronic trading after the end of the main session, contracts continued to rise in price and at the time of writing were trading at $1,872.60 per ounce.
Released on Wednesday, the minutes of the Fed's January meeting showed that central bankers noted "heightened" uncertainty around inflation prospects and the risk that prices could rise above expectations. In addition, the Fed said that "an increase in the target range for federal funds rates may be appropriate in the near future."
Investors have recently been focused on how quickly the US central bank can implement rate hikes as part of the fight against a sharp acceleration in inflation.
U.S. retail sales jumped 3.8% in January, the most significant gain since last March, when Americans spent a significant portion of government stimulus payments, according to data released Wednesday. Based on the revised data, retail sales in December decreased by 2.5%.
In addition, import prices in the US in January rose by 2% and excluding oil - by 1.4%, while industrial production in the country last month showed an increase of 1.4%.
Meanwhile, March COMEX silver futures rose 1.1% to $23.605 an ounce, while March copper futures added 0.1% to $4.537 a pound. April platinum futures rose 4.2% to $1,063.70 an ounce, while March palladium futures closed up 0.9% at $2,271.60 an ounce.