Gold rises as escalating Ukraine crisis spurs safe-haven bids

FUNDAMENTALS

* Spot gold rose 0.3% to $1,912.40 per ounce by 0035 GMT, after having hit its highest since June 1 at $1,913.89 per ounce on Tuesday. U.S. gold futures climbed 0.2% to $1,913.20.

* Separatists in Ukraine asked for Russian help to repel “aggression” on Wednesday and Kyiv announced compulsory military service and a state of emergency as the West slapped more sanctions on Moscow in a bid to stop an all-out invasion.

* The United States on Wednesday imposed sanctions on the company in charge of building Russia’s Nord Stream 2 gas pipeline, expanding penalties on Moscow after it recognised two breakaway regions in eastern Ukraine.

* The rouble plunged more than 3% as the European Union blacklisted Russian lawmakers, freezing their assets and banning travel. Wall Street slipped on news of security measures taken by Ukraine’s government on Wednesday.

* Auto-catalyst metal palladium was little changed at $2,483.51, hovering close to a near six-month peak hit on Wednesday.

* Russia is the world’s third-largest producer of gold, while the country’s Nornickel is also a major producer of palladium and platinum, both of which are used in catalytic converters to clean car exhaust fumes.

* Russia produced 2.6 million troy ounces of palladium last year, or 40% of global mine production, and 641,000 ounces of platinum, or about 10% of total mine production.

* Spot silver was up 0.1% at $24.55 per ounce, platinum rose 0.1% to $1,093.15.

DATA/EVENTS (GMT) 0030 Australia Capital Expenditure Q4 1330 US GDP 2nd Estimate Q4 1330 US Initial Jobless Clm Weekly 1500 US New Home Sales-Units Jan