As tension in Ukraine hits extreme levels, investors are heading for the safety they see in gold. Suzanne O’Halloran reports for Fox Business that gold prices have spiked to a nine-month high in response to the risk of war. She writes:
Nervous investors, spooked by a Russian-Ukraine conflict, barreled into gold on Thursday, driving the price to a level not seen since June of 2021: $1,900.70 and upward momentum may continue, aiding the SPDR Gold ETF.
“Gold has key resistance around the $1920 to $1930 zone, but if the [safe] haven bid remains strong, bullish momentum could support a move towards the $1970 level” wrote Edward Moya, senior market analyst at The Americas OANDA.
With a Russian invasion of Ukraine possible in a matter of days, according to President Biden, investors dumped stocks, sending the Dow Jones Industrial Average down 623 points, the worst session of the year, while the S&P 500 and Nasdaq Composite fell over 2%.
Even before Russian President Vladimir Putin rattled world leaders, the yellow metal was benefiting from red hot inflation, which, at the producer level is running at a record 9.7%, while consumer prices are at a 40-year-high up 7.5%.
“There is a lot of government data around inflation. Inflation is definitely there, and the way we are dealing with it — we are not dealing with negative interest rates, which is the only way you can stop inflation, all good for gold,” said Barrick Gold president and CEO Mark Bristow told FOX Business.
Barrick earlier this week reported stronger than expected quarterly results and boosted its dividend by 11% along with plans to buyback $1 billion in stock.
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