Russia-Ukraine crisis: Gold surges above $1,970, could hit $2,000 an ounce

Gold prices continue to rise, surging over 3 per cent on Thursday as Russia's military operation in Ukraine ratcheted up fears of a war in Europe and drove investors away from riskier assets and into safe havens.

Spot gold climbed 3.25 per cent to $1,970.90 per ounce by 3.37 pm UAE time.

Russia launched an all-out invasion of Ukraine by land, air and sea on Thursday, confirming the worst fears of the West with the biggest attack by one state against another in Europe since World War Two.

"There is obviously safe-haven demand coming into the (gold)price, but this crisis is very inflationary because it's adding upward pressure on commodities prices ... it is recessionary as well in terms of the growth perspective," Saxo Bank analyst Ole Hansen said.

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"A protracted escalation could see gold rising to or above $2,000 per ounce in the short-term," UBS analyst Giovanni Staunovo said.

• Asia