Gold Up, Russia Attacks Ukrainian Power Plant in Latest Invasion Development

Gold was up on Friday morning in Asia and was set for its best weekly gain since May 2021. Investors risk appetite fell after Russia attacked a nuclear power plant in Ukraine, the largest of its kind in Europe and the latest development in the Russian invasion of Ukraine.

Gold futures were up 0.32% to $1,942.10 by 11:49 PM ET (4:49 AM GMT) and were set for a weekly gain of about 3%.

In the latest development in Russia‘s invasion of Ukraine, the latter’s Zaporizhzhia nuclear power plant in Ukraine was reportedly on fire early on Friday after a Russian attack, according to a post by Dmytro Orlov, mayor of the town of Energodar where the plant is located, on his Telegram channel. Russia has already captured another nuclear plant, Chernobyl, which is 100KM (around 62 miles) north of Ukraine's capital, Kyiv.

Western powers, including the U.S. and the European Unions, have slapped sanctions on Russian individuals, companies, banks and the Central Bank of the Russian Federation (Bank of Russia) since the invasion began on Feb. 24.

The London Bullion Market Association asked six Russian gold refiners it accredits if they have commercial links with sanctioned Russian entities and if found, the links could affect their accreditation, the association told Reuters. The Russian Ministry of Finance said on Thursday that it is halting purchases of foreign currency and gold for 2022, a part of a suspension of parts of its fiscal rule relating to the use of extra oil and gas revenues.

In other precious metals, palladium jumped 1.6% to $2,818.86, after hitting its highest level since mid-July 2021 at $2,835.48 earlier in the session. The auto-catalyst metal was set to gain about 20%, its best weekly rise since late March 2020. Silver and platinum gained 0.4%.