Gold prices jumped to an eight-month high on Thursday, closing in on the key $1,900 /oz mark, after reports of mortar fire in eastern Ukraine drove investors toward safe haven assets.
Spot gold rose 1.4% to $1,895.84/oz by noon ET, its highest since early June 2021. US gold futures were also up 1.4%, trading at $1,899.00/oz in New York.
Russian-backed rebels and Ukrainian forces traded accusations on Thursday that each had fired across the ceasefire line in eastern Ukraine. The escalating tensions reinforced gold’s investment appeal while dampening appetite for riskier assets.
“When times really get uncertain and anxiety is running high, gold is still the safe-haven asset to go to,” Jim Wyckoff, a senior analyst at Kitco Metals, said in a Reuters report.