 "Gold prices climb as investors assess impact of Russian invasion on Ukraine")
(Reuters) - Gold rose on Friday, stabilising after big swings in the previous session when prices jumped as much as 3% before closing lower, as investors reassessed the fallout of the Ukraine crisis and fresh sanctions imposed by the West against Russia.
Palladium resumed its rally, with traders cued in for signals on potential supply shortfalls from Russia.
Spot gold XAU= rose 0.7% to $1,916.10 per ounce by 0645 GMT, after hitting its highest since September 2020 at $1,973.96 on Thursday. The contract was set for a fourth straight weekly gain. U.S. gold futures GCv1, however, shed 0.5% to $1,917.60.
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"(In the) near term, investors are still digesting, still assessing risks and rewards as a result of the Ukraine invasion and the implications of Western sanctions on Russia," said Margaret Yang, strategist at DailyFX. MKTS/GLOB
The Russian invasion has been pegged as the biggest attack on a European state since World War Two. (Full Story)
"February has proved to be the perfect storm for gold - with inflation, falling stock markets and geopolitical uncertainty boosting its safe-haven appeal," said David Jones, chief market strategist at Capital.com.
Exchange-traded funds that invest in gold and other precious metals have seen massive inflows this year. (Full Story)
UBS analysts said gold could hit $2,000 "if things deteriorate," but prices will be pressured by a rebound in U.S. real rates and risk sentiment if not.
Palladium gained 2.7% to $2,465.85, after scaling a peak since July 2021 at $2,711.18 on Thursday, on course for a third weekly rise.
"With platinum (and palladium) being a key export for Russia, we simply rushed to those exits, covering shorts. Today, platinum and palladium are simply following gold," said Matt Simpson, senior market analyst at City Index.
Russia's Nornickel is a major producer of both metals used in catalytic converters to clean car exhaust fumes.
Spot silver rose 0.5% to $24.33 per ounce, platinum was up 0.3% to $1,059.97.
(Reporting by Asha Sistla in Bengaluru; Editing by Devika Syamnath)
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