Much of the buying was described as a flight to safety, particularly as the equity market tumbled, with short covering adding more fuel to gold’s move.
“Obviously, with all of the turmoil in Crimea, gold has basically reasserted its role as a safe-haven play,” said Jim Comiskey, senior account executive with Archer Financial Services.
Russian troops reportedly entered Crimea after the previous pro-Russian government of Ukraine fell. CNN quoted Ukraine’s defense ministry as saying that the Russian commander of the Black Sea Fleet went aboard a blocked Ukrainian warship in Crimea’s Sevastopol Harbor and issued a threat to surrender or else face an attack. Russia’s parliament is also reportedly considering the annexation of Crimea. Western nations have condemned Russia’s actions.