Gold gained for a second consecutive day with the benchmark Comex contract rising to a 3-week high of 1315.8 before settling at 1309.3, up +0.49%. Heightened tensions in Ukraine raised demand for safe-haven. However, we doubt if the strength would sustained, in particular Russia might need to sell its gold holdings for liquidity as the West implements more sanctions against it. Gains in gold price were limited as encouraging US ISM data suggested the Fed would taper as scheduled.
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Gold Rose as Concerns over Russia’s Deployment of Troops to Ukraine Heightened