Gold futures rose Monday as U.S. traders returned from a threeday weekend, with little prospect for a quick end to Russias invasion of Ukraine in sight contributing to global inflation and supporting haven demand for the precious metal and lifting prices to highs above 2,000 an ounce.
Gold directly benefits from the RussiaUkraine conflict inflation effects, which are now more meaningful than direct military developments, in a market sense, said Stephen Innes, managing partner at SPI Asset Management, in a daily note. These consequences have fabricated a hyperinflationary environment that sees gold investors stocking up on paper and the physical metal for the eventual procession to recession.
Gold for June delivery was up 18.90, or 1, at 1,993.80 an ounce on Comex, after touching a high at 2,003. Prices rose 1.5 for last weeks holidayshortened week. May silver was up 54.5 cents, or 2.1, at 26.245 an ounce, after last weeks 3.5 gain. Gold snapped a fiveday winning streak on Thursday. U.S. markets were closed for Good Friday.
Apparent Russian missile attacks rocked the western Ukraine city of Lviv Monday, killing at least six, as the country prepared for an allout Russian assault on eastern Ukraine. Ukrainian troops were holding out in the southeastern port city of Mariupol, which has been largely destroyed, after rejecting Russian demands to surrender.
Gold has rallied on apparent haven demand even as yields on Treasurys have risen and the U.S. dollar has strengthened…