21 Feb 2022
Gold Drops amid Ukraine-Russia Tensions but Hovers near Eight-Month Highs
The Index Today
Gold dropped on Monday morning in Asia amid rising geopolitical tensions between Ukraine and Russia which continue to drive investor appetite for safe-haven assets. However, the yellow metal still looms near eight-month high levels.
Gold futures dipped by 0.01% to $1,899.65 by 10:02pm ET (3:02am GMT). It has been witnessing highs recently, spurred by unstable conditions in Ukraine and Russia which have informed investor appetite for risk assets.
U.S. Secretary of State Anthony Blinken is set to meet Russia’s foreign minister Sergei Lavrov for possible negotiation talks. President Joe Biden will also meet Russian President Vladimir Putin “in principle” for the same. This comes after Biden on Friday warned of an imminent Russian attack on Ukraine “within days”.
Rising investor appetite for safe-haven assets has temporarily offset worries over upcoming interest rate hikes as members of the U.S. Federal Reserve namely Lael Brainard, John Williams, and Charles Evans posit a keenness to start raising interest rates soon.