Russia-Ukraine crisis pushes gold to highest level in 8 months
Date 18 Feb 2022 at 3:20 p.m.
Global gold prices soar to $1,900 an ounce amid tensions in Ukraine.
Bloomberg News reported that gold prices rose 0.2% to $1,902.48 an ounce. That was the highest since June 11 or in eight months, before falling 0.4% to $1,890.91 an ounce in Singapore at 10:40 AM.
The slight drop in trading prices came after Russia agreed to hold talks on Ukraine with the United States, easing geopolitical concerns that have fueled demand for safe haven assets.
Russia has accepted a proposed meeting between US Secretary of State Antony Blinken and Russian Foreign Minister Sergei Lavrov in Europe at the end of next week.
While Ned Price, a spokesman for the US State Department, said US admits if Russia does not invade Ukraine
This year, the price of gold is quite high. It rose to its highest point in June, with the possibility of European conflict as a factor pushing prices. It is still in a three-week uptrend even as the Federal Reserve prepares to raise interest rates, which could weaken demand for gold, a non-interest-bearing precious metal.
John Phineney, business developer at Guardian Gold Australia, sees gold speculation as volatile. We may see further price surges if news of the break-in is official. and could drop around $50 or more if the situation calms down.
Analysts at Citigroup Inc. revised their short-term gold price forecasts from $1,825 to $1,950 due to geopolitical tensions, and in the next 6-12 months prices could be around $1,750 as yields on government bonds weaken. Higher and stronger stocks could impact bullion prices again.
