A report by Mining Weekly reveals that the price of gold scaled the $2000-level for the first time in over a year on Monday, 7th March. This update is coming up in the wake of the Russia-Ukraine crisis.
According to the report, Spot gold has moved up 0.9% at $1 986.83 per ounce after scaling to its highest since August 19, 2020 at $2 000.69 earlier in the day. Also, the report reveals that US gold futures rose 1.3% to $1 992.00.
Speaking about the rise in price, currency strategist at DailyFX said: “If this was risk aversion driven by the US Federal Reserve as seen ahead of this war, that wasn’t something that lifted gold as that risk aversion was about rising rates, which is not an environment in which gold does well. This risk aversion, however, is geopolitical, and so there seems to be a reflective demand for non-paper assets.”
The effects of the war have been felt for over two weeks with many trading commodities affected the most starting with the price of oil.
The fighting has affected so many people with reports showing how people are struggling to evacuate many besieged Ukrainian cities.
Russian President Vladimir Putin has also vowed to press ahead with his invasion unless Kyiv surrendered. However, reacting to Vladimir’s invasion are sanctions that have been served Russia from the international communities – sanctions that are also affecting the market one way or another.
Reports also reveal that holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.4% to 1054.3 tonnes on Friday, 4th March – the highest recorded since mid-March 2021.
Experts also project that Spot gold may keep rising towards $2065 per ounce. Palladium has also risen up 4.3% at $3 130.16 per ounce, after hitting an all-time high of $3 172.22 earlier within this period.
It is also interesting to note that Russia accounts for 40% of the global production of auto-catalyst metal. A metal used by automakers in catalytic converters to curb emissions.
Speaking on the sanctions and how they may affect the world, Spivak said: “We’re looking at a very significant pick-up in concerns around the disruptions with Ukraine seemingly because the conflict is showing signs of broadening.”