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 Oil prices gained more than $1 in early trade on Monday on rising jitters over potential conflict between Russia and Ukraine, with the United States and European Union making clear Russia would face sanctions if it invaded its neighbour.

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 Oil prices slumped Tuesday, falling from seven-year highs, after Russia announced that some of its troops are returning to base after drills on the Ukrainian border, resulting in some of the associated risk premium leaving the market. 

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A couple of months ago, the fizzling of a geopolitical event like Ukraine-Russia might have just taken the bottom out of gold.

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