Gold is getting further support rising above the $ 1,900 level, a fresh 52-week high, as of late Sunday as US equities see more volatility amid Russia’s invasion of Ukraine.
Russia’s Central Bank indicated it will dip back into the precious metals market.
“From February 28, 2022, the Bank of Russia resumes the purchase of gold on the domestic precious metals market. The purchase price of gold will be determined daily based on the morning price of the London Bullion Market Association (LBMA Gold Price AM)”[ads1]; a notice read on the bank’s website, translated.
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This follows confirmed that US and foreign allies agreed to remove select Russian banks from SWIFT, the global financial system, curbing access to banks in over 200 countries. An aggressive attempt to weaken Russia’s financial power.
BRITISH PETROLAUGHABOUT DUMPS ROSNEFT
|GLD||SPDR GOLD SHARES TRUST – EUR ACC||176.55||-0.59||-0.33%|
The SPDR Gold Fund, the largest exchange-traded fund backed by physical gold, has advanced 5% in February compared to the S&P 500 which has fallen 3%.
Last Thursday Gold closed at $ 1,925.10 then a fresh52-week high as US equities saw steep swings between losses and gains.
Gold prices, which mirror the fund, could continue to climb, according to UBS.
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“Amid the risk of supply disruptions, we think broad commodities can be an effective geopolitical hedge for portfolios as well as offering an attractive source of returns in an environment of accelerating growth, persistent inflation and higher rates,” Mark Haefele, chief investment officer of Global Wealth Management, UBS AG, wrote last week.
“We think a protracted escalation could push gold prices above ($ 2,000 an ounce).”