The gold market continued to see significant price fluctuations at the start of trading earlier in the week as Western countries continued to react to Russia’s attacks on Ukraine.
Criticism and economic sanctions hurled against Russia, have sparked a warning from President Vladimir Putin after he ordered his nuclear forces to be on high alert.
This indirectly led to market concerns that Russia would use its nuclear weapons, thus spurring demand for safe-havens.
Examining price movements, spot gold traded steady at around $ 1,910 per ounce after rising more than 1% on the Asian session market opened.
However, the rise in gold prices was relatively limited, indicating that the increase was limited due to the strengthening of the US dollar.
The precious metal has gained around 6.3% this month on the back of concerns over a surge in global inflation and the worsening Russia -Ukraine conflict after Moscow launched its offensive last Thursday.
The United States and its allies continue to drop sanctions on the Kremlin, where most recently the G7 countries have agreed to exempt major Russian banks from SWIFT and target the international reserves of Russia’s Central Bank.
Following this uncertainty, the precious metal is now on track to record its best month since May 2021.
