Gold prices on Thursday jumped over 2% to their highest in more than a year, with investors flocking to safe havens as Russian forces invaded Ukraine after President Vladimir Putin authorized what he called a special military operation.
Spot gold climbed 1.7% to $1,939.97 per ounce by 0611 GMT, after hitting its best level since January 2021 at $1,948.77. U.S. gold futures rose 1.8% to $1,943.90.
Russian forces fired missiles at several Ukrainian cities and landed troops on its south coast, officials and media said.
Gold, considered a safe store of value during uncertain times, has risen about 8% in February so far as the Russia-Ukraine crisis walloped risk appetite.
The metal is headed for its best monthly performance since July 2020.
"Gold is a haven asset along with the U.S. dollar and this is its day. We could inevitably see new all time highs in gold," said Jeffrey Halley, a senior market analyst at OANDA.
Prices could continue rallying towards resistance at $1,960 an ounce and test $2,000 in the next few sessions, Halley added.
Russia is the world's third-largest producer of gold, while the country's Nornickel is also a major producer of palladium and platinum.
Spot silver gained 2.1% to $25.03 per ounce, platinum rose 1% to $1,102.43, and palladium added 1.3% to 2,514.54.
The dollar and oil prices also rocketed higher, while global stocks and U.S. bond yields dived.
Stephen Innes, managing partner at SPI Asset Management, said "it's just not the fog of war for gold, but also inflation", especially with oil hitting $100 a barrel, and that's why gold is becoming a defensive product.
"There is a shift into gold for hedging relatively cheap, believe it or not, at this price," Innes added.