By Bharat Gautam

(Reuters) – Gold prices rose Monday to their highest level since March mid-March. This was due to investors turning to bullion after the Russia-Ukraine crises weakened risk-aversion.

It was at $1.984.51 per anounce up 0.5% as of 0445 GMT. The highest point since March 14, 2014. U.S. prices were 0.7% higher at $1,988.10.

It seems like the market is experiencing some risk aversion, along with some excess from Russia-Ukraine, stated Ilya Spivak (a currency strategist at DailyFX), while cautioning that thin liquidity may exaggerate the price action.

Ukrainian officials condemned Russian artillery strikes on northeastern cities and continued siege of Mariupol in the south, where Moscow claimed it has almost taken full control after almost two months bloody fighting.

Bullion can be used as a secure store of value in times of economic and political crisis.

Spivak stated that while a $2,000 test is most likely to prove gold’s worth, $2,100 represents the larger and more powerful figure. There are significant peaks in the area which would have to be overcome for any long-term gains.

The yields on Monday’s benchmark U.S. Treasury 10-year U.S. Treasury bond were at their highest levels since December 2018, despite the fact that zero-yielding gold was not making any progress. [US/]

According to Wang Tao, Reuters technical analyst, spot gold could rise to $1,998-$2,012, after it broke through the resistance of $1,984 an ounce. [TECH/C]

China’s economy slowed down in March. Weakness in property, consumption and exports eclipsed faster-than-expected second-quarter GDP growth. This suggests a decline in outlook due to the impact of the COVID-19 curbs on China and the Ukraine conflict.

Spot silver rose 0.4% at $25.79 an ounce. Platinum gained 1.1% to 1,000.82 and palladium increased 1.6% to 2,406.93.