Gold prices soared to a nine-month high on Tuesday as demand for safe-haven investments increased following Russia‘s order to send troops into separatist regions of eastern Ukraine.

Spot gold was up 0.2% at $1,909.54 per ounce, after reaching its highest level since June 1 at $1,913.89 per ounce earlier. Gold futures in the United States rose 0.7% to $1,913.60, as per  CNBCTV18 data.

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Gold prices on the Multi Commodity Exchange (MCX) in India increased marginally on Tuesday, February 22, 2022. Gold futures were trading at Rs 50,459.00 per 10 gm, up 381 points or 0.76%, in the Indian market. Silver futures were trading at Rs 64,360.00 per kg, up 769 points or 1.21%.

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Russian President Vladimir Putin on Monday recognized two separatist areas in eastern Ukraine as independent and ordered Russia’s troops to conduct what Moscow called a peacekeeping operation in the region, escalating a situation that the West worries may turn into a major war. Oil prices reached a seven-year high and US stock futures fell.

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According to the White House, US President Joe Biden signed an executive order prohibiting trade and investment between US citizens and the two separatist regions of eastern Ukraine.

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US benchmark 10-year rates fell on the back of the Ukraine crisis and Fed rate increase forecasts, retreating from a more than two-year high reached last week.

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Fed policymakers agreed that, with inflation tightening its hold on the economy and employment remaining robust, it was time to raise interest rates, but that any decisions would be based on an analysis of inflation and other statistics at each meeting.

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While metal is seen as a hedge against inflation and geopolitical threats, rising interest rates would increase the opportunity cost of owning non-yielding bullion. Spot silver was up 0.4% to $24.03 per ounce, platinum was up 0.5% to $1,080.03, and palladium was up 0.5% to $2,399.41 per ounce.