Business News Asia
Uncertain times are one of the main drivers for safe-havens. Since the COVID 19 pandemic and now the outbreak of a new Ukrainian invasion crisis, safe assets such as gold and silver are in demand again. This is also reflected in the price, with gold futures again above $1,960 per ounce.
- Gold futures rose $30.7, or 1.59%, at $1,966.6 an ounce.
- Silver futures were up 57.7 cents, or 2.29%, at $25.789 an ounce.
- The platinum was up $36, or 3.33%, to close at $1,116.8 an ounce.
- The palladium futures were up $251.10, or 9.2 percent, at $2,981.90 an ounce.
The gold price rose this week to its highest level since May 2021.
Investors are concerned about escalating violence between Russian and Ukrainian forces, following reports of an attack on a nuclear power plant in Ukraine. The conflict between the two countries is now entering its second week and a diplomatic solution has not yet been found.
The director of the International Atomic Energy Agency (IAEA) Rafael Mariano Grossi said that the reactor of the Zaporizhzhya nuclear power plant in Ukraine had not been damaged. It had not suffered any physical damage as a result of the Russian attack and no radioactive material had leaked out.
He also said he was already personally traveling to the Ukrainian nuclear plant to see the damage for himself and get an overview of the plant’s safety.
The Zaporizhzhya nuclear power plant is the largest nuclear power plant in Europe.
In addition to the events in Ukraine, people in Europe are likely to continue to experience a loose monetary policy from the ECB. The impact on the economy is already being felt, with supply chain problems looming, for example in the automotive sector. This will most likely tempt the ECB to maintain the stimulus measures.
By contrast, the Fed will probably dare to raise interest rates slightly for the first time in March, as Fed Chairman Jerome Powell hinted this week. But even with a slight rise in interest rates, the real interest rate remains negative. This should have a positive impact on the gold price.
The Spot Market is Closed
Saturday, March 5, 2022