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Gold affirms by crisis in Ukraine; yield hike dampens profits

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By Bharat Gautam

March 21 (Reuters) – Gold values ​​rose on Monday as fighting in Ukraine boosted demand for the safe-haven asset, but strong U.S. Treasury yields limited bullion’s gains.

* As of 1110 GMT, spot gold was up 0.3% at $1,926.46 an ounce, while U.S. gold futures were down 0.2% at $1,925.90.

* “We’re keeping a fleet. The risk is more to the downside than up at the moment, we’ll have to wait and see,” said Michael Hewson of CMC Markets UK. However, he added that gold prices are supported around last week’s lows near $1,890, which could help move towards $1,940-1,950.

* Stocks declined as fighting in Ukraine dragged on with no sign of a ceasefire, despite continuing diplomatic efforts.

* However, benchmark 10-year Treasury yields rose to around 2.180%, raising the opportunity cost of holding non-interest-bearing bullion.

* Last week, gold prices lost more than 3% drop, their biggest weekly percentage since mid-June, as optimism over Russia-Ukraine peace talks and rising US interest rates they dented the demand for the metal as a shelter.

* “Gold appears to have seen its bullish momentum fade for the time being,” Rupert Rowling, market analyst at Kinesis Money, said in a note.

* In other precious metals, spot silver was up 0.3% at $25.03 an ounce; platinum was up 0.8% at $1,030; and palladium advanced 1.1% to $2,519.29.

(Edited in Spanish by Carlos Serrano)

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