Originally Syndicated on April 10, 2023 @ 10:59 am
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The price of gold skyrockets
In the United States, recent statistics on inflation led to an increase in the price of gold to levels higher than $1,900 per ounce.
According to Reuters, it happened.
According to the information provided by the trading platform, the price of gold during trading on the Comex market of the New York Mercantile Exchange on Thursday increased to more than 1,900 dollars per troy ounce.
This is the first time that this landmark has been accomplished in the last eight months, since it wasn’t achieved until May 2022. Previous to this, the price of an ounce of the precious metal had never been higher than $1,900.
On Thursday, the price of gold climbed above $1,900 for the first time since June. Investors flocked to the safety of bullion as a result of comments made by Vice President Joe Biden of the United States, who stated that there was every indication Russia planned to invade Ukraine. This caused gold prices to rise.
After reaching its highest point since June 11 at $1,900.99 earlier, the spot price of gold increased by 1.7% to $1,899.84 per ounce.
Gold futures traded in the United States finished the day 1.6% higher, at $1,902.
The value of the dollar fell, which helped gold prices rise to an all-time high just before the publication of the US inflation figures for December. The appreciation of gold among holders of other currencies is facilitated by the decline in the value of the US dollar.
An analyst at Standard Chartered named Sookie Cooper stated that “declining real rates and a weaker dollar helped gold.” [Cooper’s] comments were made in reference to gold.
Russia-Ukraine tensions hurt U.S. stocks
When tensions increased in Ukraine, the stock market in the United States fell by more than one percent. On Thursday, Russian-backed separatists and Ukrainian soldiers swapped claims that they had shot across the ceasefire line in eastern Ukraine. Each side said the other had violated the truce.
Jim Wyckoff, a senior analyst at Kitco Metals, remarked, “Gold is still the safe-haven asset to turn to when circumstances are genuinely unstable and anxiety is high.” Gold remains a safe-haven asset in times of extreme unpredictability and high levels of anxiety.
Around this time, Moscow dismissed deputy U.S. ambassador Bartle Gorman, threatening a reprisal from the United States in the wake of increased concerns about a potential Russian invasion of Ukraine.
“Not only are investors seeking safe havens due to developments on the Ukrainian border, but gold also offers inflation protection at a time of increasing prices and the threat of increased oil and gas costs if Russia does invade,” Craig Erlam, a senior market analyst at OANDA, wrote in a note. “Not only are investors seeking safe havens due to developments on the Ukrainian border, but gold also provides inflation insurance at a time of increasing prices.”
The minutes of the most recent policy meeting, held on Wednesday, revealed that policymakers agreed that raising the Fed’s benchmark overnight interest rate from its current near-zero level would be “soon appropriate.” But, they also stated that they would re-evaluate the timing of rate increases at each subsequent meeting.
According to Han Tan, an analyst at Exinity, the most recent FOMC minutes did not provide any new hawkish hints.
The price of metals increases
After reaching a two-week high earlier in the trading session, the price of the auto-catalyst metal palladium increased by 3.4% to $2,358.19.
Analysts believe that supply interruptions are possible if Russia and Ukraine get involved in a conflict because Russia is one of the major palladium-producing countries in the world.
After reaching its highest point in the last three months earlier, silver advanced 1.4% to reach $23.87, and platinum climbed 2.3% to reach $1,085.83.
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