Gold prices increased on Monday as investors sought safety amid rising geopolitical tensions. The price of gold for April delivery rose $10.90, or 0.6%, to settle at $1,995.10 an ounce on the Comex in New York.
The gains came as Russia continued to mass troops on its border with Ukraine, raising concerns of a potential invasion. Gold is often seen as a safe haven asset, and investors often turn to it in times of geopolitical uncertainty.
“Gold is benefiting from the risk-off sentiment in the markets,” said Edward Moya, senior market analyst at OANDA. “Investors are looking for a safe place to park their money, and gold is one of the best options.”
In other news, the U.S. dollar index was slightly lower on Monday as investors weighed the potential impact of the Federal Reserve’s interest rate hike on the global economy. The dollar index, which measures the greenback against a basket of other currencies, was down 0.1% at 98.55.
A stronger dollar can make gold more expensive for holders of other currencies, weighing on gold prices. However, gold is also seen as a hedge against inflation, and higher inflation could support gold prices in the long term.
Overall, gold prices are expected to remain volatile in the coming weeks as investors continue to monitor the geopolitical situation and the Federal Reserve’s monetary policy.