Gold edged higher as geopolitical uncertainty increased following an attempted mutiny by Russian mercenary group Wagner, while investors weighed recessionary signals.
Bullion rose as much as 0.2% on Monday after closing 1.9% lower last week on hawkish commentary from US and European central banks.
Despite the uncertainty surrounding the turmoil in Russia, the haven upside for gold was limited after Wagner leader Yevgeny Prigozhin suddenly halted his dramatic advance toward Moscow over the weekend. While the instability could reverberate further, the initial reaction in gold was fairly muted.
The situation in Russia follows a tough week for investors as anxiety rose over recession fears, particularly in Europe. The weak economic backdrop has boosted safe haven demand, ANZ Banking Group Ltd. analysts Brian Martin and Daniel Hynes wrote in a note.
Spot gold rose 0.2% to $1,925.22 an ounce as of 7:56 a.m. in Singapore. The Bloomberg Dollar Spot Index declined 0.1% after climbing 0.8% last week.
Source : Bloomberg
