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On Thursday the price of gold rose to a one-week high, as the safe haven appeal of the precious metal increased, amid fears of inflation and uncertainty surrounding the war in Ukraine.
At 14.23 GMT, spot gold rose 0.8 percent to $ 1958.75 an ounce, the highest level since March 14. US gold futures rose 0.9 percent to $ 1,954.80 an ounce.
“Very strong inflationary pressures are the primary support for raising the price of gold, but the war in Ukraine is very obvious,” said David Meijer, director of metals trading at High Ridge Futures.
Last week, the US Federal Reserve raised the cost of borrowing by 25 basis points, and since then the bank’s top policymakers have been pushing for more cash this year to combat rising inflation.
Analysts say that unproductive gold may lose its attractiveness when interest rates rise, but rising conflicts in Ukraine and rising oil prices have added to the current inflationary pressures that have helped secure the price of gold.
Amid differences over the imposition of additional sanctions on Russia’s energy sector, US President Joe Biden will meet with his country’s European allies at an emergency NATO summit on Thursday. Among other precious metals, silver rose 2.3 percent to $ 25.65 an ounce.
Platinum was up 0.1 percent at $ 1021.38 an ounce. Palladium was $ 2512.03 an ounce.
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