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Gold prices fell on Monday, with the rise of the US dollar, but fears of conflict between Russia and Ukraine limited losses for the metal, which is considered a safe haven and kept palladium investors in a state of anxiety.
The price of gold in spot transactions fell 0.2 percent to $ 1855.86 an ounce by 1030 GMT. On Friday, prices recorded the biggest gains since mid-October and reached the highest level since November 19 at $1,865.15.
US gold futures rose 0.6 percent to $1,853.70.
On Sunday, the United States said Russia could create a surprising pretext for an attack on Ukraine. But Moscow denied any plans to invade its neighbor and accused the West of behaving “hysteria”, despite massing more than 100,000 troops near Ukraine.
The dollar rose 0.2 percent and US 10-year Treasury yields rose, raising the opportunity cost of holding non-yielding gold.
Meanwhile, palladium, which is used to make cars, rose 0.2 percent to $2,310.31 an ounce, after it had reached its highest level in nearly five months on Jan. 31.
Russia’s palladium exports are close to 50 percent of global production, leaving the metal highly vulnerable to the risks of temporary cuts to Russian supplies if the conflict with Ukraine escalates, said Ole Hansen, an analyst at Saxo Bank.
The silver price in spot transactions rose 0.5% to $23.69 an ounce, while platinum fell 0.5% to $1021.93.
