War Fears and Inflation Concerns Push Gold Above $1,860

Gold futures closed higher on Friday (Feb. 11), buoyed by persistent inflation and the U.S. warning that Russia already has enough troops on the Ukrainian border for the invasion.

  • Gold prices closed up $32.40, or 1.77%, at $1,866.40 per ounce.
  • Silver was up 40 cents, or 1.70%, at $23.76 an ounce.
  • The platinum contract was down $3.00, or 0.29%, at $1,044.00 per ounce.
  • Palladium was up $59.00, or 2.69%, at $2,452.00 an ounce.

Market analysts explained that rising inflation is causing investors to buy gold contracts to hedge against inflation. In addition, there is also more and more concern as the belief rises that the central banks no longer have inflation under control.

In addition, Michigan consumer sentiment fell to 61.7 in February from 67.2 in January.

Gold contracts gained momentum after U.S. National Security Advisor Jake Sullivan told reporters there was a possibility Russia would invade Ukraine next week.

“Gold prices could soar above $1,900 if Russia invades Ukraine. And traders do not want to sell their gold contracts before this weekend,” said Edward Moya, market analyst at Oanda.

Gold is rising hand in hand with the dollar and U.S. government bond yields at the moment. Following the U.S. announcement that inflation figures have risen more than expected.

The dollar index, which measures the dollar’s performance against six major currencies in a basket of currencies, rose 0.14% to 95.69.

The yield on 10-year U.S. Treasury notes rose above 2.0%.

The Spot Market is Closed

Saturday, February 12, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
05.00
1,859.00
1,860.00
+32.40
1.77%
1,820.90
1,866.40
Silver
05.00
23.57
23.67
+0.40
1.70%
22.83
23.76
Platinum
05.00
1,023.00
1,033.00
-3.00
-0.29%
1,004.00
1,044.00
Palladium
05.00
2,255.00
2,405.00
+59.00
2.69%
2,118.00
2,452.00
Rhodium
05.00
16,900.00
18,900.00
+1,150.00
7.30%
16,900.00
19,100.00

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