Business News Asia
In times of war, people seek tangible things like gold or currency. The situation around Ukraine makes the stock markets all fall while on the other hand, gold prices rise.
This happened on Friday as gold prices rose 1.26% in the evening to $1,860.50 an ounce going into the weekend, the highest level since November.
At the moment, both sides are pouring oil on the fire surrounding the Ukraine crisis.
On the Russian side, troop exercises of a size not seen since the Cold War era are being conducted. In addition, naval fleets are being moved into the Black Sea to further increase the presence.
The U.S. government continues to alarm that an invasion of Ukraine may take place at any moment. Moreover, President Biden had urged all U.S. citizens to leave Ukraine.
Ukrainian President Volodymyr Zelenskyy has now invited Biden to Ukraine in Kiev to further de-escalate the situation. The U.S. government has not yet issued a statement.
With the rising price of gold, the shares of the world’s two largest gold producers Newmont (NEM) and Barrick (GOLD) also soared on Friday.
Newmont’s share price on the NYSE gained 5.5% on Friday and is currently trading at $63.86.
The Barrick shares could even gain a full 7.15% to $20.68.
For both shares, the price jump means a multi-month high.
It will also be exciting for both shares because both companies will report their results for the last quarter. Barrick will release its quarterly results on Wednesday, Newmont will follow 10 days later. With a gold price of around $1,800, both companies are expected to report very healthy financials.