Gold futures closed at an eight-month high on Wednesday (Feb. 16), driven by investors buying gold as a safe haven. The North Atlantic Treaty Organization (NATO) confirmed that Russia continues to strengthen its military along the Ukrainian border.
- The gold futures were up $15.3, or 0.82%, at $1,871.5 an ounce.
- Silver futures were up 26.3 cents, or 1.13%, at $23.605 an ounce.
- The platinum contract was up $43.3, or 4.24%, at $1,063.7 an ounce.
- The palladium futures were up $19.30, or 0.9%, at $2,271.60 an ounce.
Investors are buying gold as a safe haven after NATO Secretary General Stoltenberg said yesterday that Russia is continuing to reinforce its troops on the Ukrainian border. Although there are reports that Russia has withdrawn some of its troops from the area.
In addition, Stoltenberg said that in the past, Russia has often moved troops and equipment during the reinforcement phase.
“What we is that they have increased the number of troops and more troops are on their way. So, so far, no de-escalation,” Stoltenberg said.
U.S. President Joe Biden also warned that Russia still has more than 150,000 troops stationed near the Ukrainian border.
The weaker dollar and the decline in U.S. Treasury yields are also supporting the gold price.
The dollar index against the six major currencies in a basket of currencies fell 0.30% to 95.6990.
The yield on the 10-year U.S. Treasury bond fell to 2.042%, while the yield on the 30-year Treasury bond fell to 2.359%.
Investors are watching the crisis in Ukraine and the minutes of the Federal Reserve (Fed) monetary policy meeting.
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Thursday, February 17, 2022