Gold prices jumped to an 8-month high on Tuesday, as investors turned away from risky assets and turned to the precious metal, which is considered a safe haven, as tensions rose between Russia and the West over Ukraine.

And gold rose in immediate transactions 0.4% to $ 1877.96 an ounce at 06:39 GMT, after hitting its highest level since June 11 last, at $ 1879.48.

And gold rose 0.6% in US futures contracts to $ 1880.20 an ounce.

Stephen Innes, director at SPI Asset Management, said the Ukraine crisis was supporting gold at a time of inflation due to high oil prices, and risk aversion as stocks fell.

"If we lose the momentum caused by (the conflict) Ukraine, gold will drop quickly," he added.

The precious metal got more support with the decline in US 10-year Treasury yields, reducing the opportunity cost of holding non-yielding gold.

A slightly weaker dollar boosted gold's attractiveness to buyers holding other currencies.


Oil is going down a bit

Meanwhile, crude oil prices fell at the beginning of trading today, Tuesday, while remaining near a 7-year peak, at a time when investors were evaluating indicators of the easing of tension in the Ukrainian crisis and the prospects for an increase in the supply of crude in the markets.

The North Atlantic Treaty Organization (NATO) intends to hold a meeting of its defense ministers tomorrow, Wednesday, to discuss strengthening its military presence in eastern and southeastern Europe, coinciding with the escalating tension between Russia and the West against the backdrop of the Ukraine crisis.

Despite the United States' warnings of the possibility of Russia attacking Ukrainian lands this week, Russia called for continuing diplomatic efforts to resolve the crisis, reiterating its denial of its intention to invade Ukraine.

At 08:00 GMT, the price of Brent crude futures for next April delivery fell by 0.94% to $95.57 a barrel.

The prices of US West Texas Intermediate crude futures for March delivery also fell by 0.95% to $94.56 a barrel.

Russia is the second largest producer of crude oil in the world after the United States, with an average daily production of 10.2 million barrels per day.

Global markets fear a disruption in commodity and energy supply chains, with a possible military escalation in the coming days.

At a time when geopolitical risks in Europe will dominate the market movement this week, indicators of the strong growth of shale oil production in Europe and the prospects of Iranian oil returning to global markets with an agreement on the Iranian nuclear program imminently boosted hopes for an increase in the supply of crude oil in markets.