Four of the wealthy Group of Seven (G7) nations decided to ban Russian gold imports on Sunday in order to tighten the sanctions pressure on Moscow and cut off its ability to finance the invasion of Ukraine. Even before this decision takes effect, gold prices are rising.

Reports that some Western nations are planning to officially ban imports of the metal from Russia for its invasion of Ukraine have sparked some interest in bullion. As a result, the price of gold rose on Monday. Spot gold was up 0.5% at $1,835.58 an ounce at 0231 GMT. U.S. gold futures were up 0.3% at $1,836.30.

Gold is seen as a hedge against inflation, but higher interest rates increase the opportunity cost of holding bullion, which pays no interest. Spot silver rose 1.2% to $21.36 an ounce, platinum gained 0.5% to $912.00 and palladium climbed 0.6% to $1,886.65.