Gold Futures Settle At 3-month High On Safe-haven Appeal

Gold prices moved up sharply on safe-haven appeal on Monday as rising geopolitical tensions between Russia and Ukraine triggered a sell-off in global equities, and the dollar strengthened against major currencies.

The dollar index climbed to 96.41, gaining about 0.35%.

Gold futures for April ended higher by $27.30 or about 1.5% at $1,869.40, the highest settlement in three months.

Silver futures for March ended up by $0.479 at $23.848 an ounce, while Copper futures settled at $4.5075 per pound, up $0.0015 from the previous close.

A telephonic conversation between U.S. President Joe Biden and Russian President Vladimir Putin over the weekend failed to ease tensions, with Washington saying that there was “no fundamental change in the dynamic that has been unfolding now for several weeks.”

“We believe that we have put ideas on the table that would be in our and our allies’ interest to pursue, that would enhance European security, and that would also address some of Russia’s stated concerns,” an official said in a call with reporters.

The official added, “But it remains unclear whether Russia is interested in pursuing its goals diplomatically as opposed to through the use of force.”

Biden warned that the U.S. and its allies were prepared to respond “decisively and impose swift and severe costs” on Russia, if Putin launches an attack into Ukraine.

Russia said that the U.S. and NATO had failed to address its main security concerns, blaming the West of stoking hysteria over the Ukraine crisis.

Traders also digested mixed remarksby Federal Reserve officials about interest rate hikes. While St. Louis Fed President James Bullard told CNBC he favors front-loading planned interest rate increases, San Francisco Fed President Mary Daly told CBS’ “Face The Nation” she prefers a measured pace of rate hikes.

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