Gold prices rose above $2,000 in Asia Monday morning for the first time in six months. Investors are turning to the safe-haven yellow metal in the light of the intensification of the Russian invasion of Ukraine. In addition, fears of supply shortages have pushed the price of palladium to record levels.
- Gold futures rose 1.33% to $1,992.75 after hitting $2,000.69, the highest since Aug. 19, 2021.
- Silver is up 1.50% to 26.17 an ounce.
- Platinum is up 2.85% to 1,163 an ounce.
- Palladium rose 4.3% to $3,130.16 an ounce after hitting an all-time high of $3,172.22 in the previous session. Russia accounts for 41% of global palladium production.
The gold price has already consolidated in recent months after reaching a new all-time high shortly after the outbreak of the COVID pandemic. The current interest rate environment is a bullish signal for the gold price, as real interest rates are still negative. With the Ukraine crisis, eyes are now turning to central banks and whether they really want to change their loose monetary policy to counter rising inflation.
Meanwhile, the Russian invasion of Ukraine continues. President Vladimir Putin has pledged to continue the invasion until Ukraine surrenders. Heavy fighting on Sunday prevented the evacuation of some 200,000 people from Mariupol for the second day in a row.
In addition, SPDR Gold holdings rose 0.4% to 1,054.3 tons on Friday. This is the highest level since mid-March 2021. The spot gold price is expected to rise further to $2,065 per ounce.
Investors are still waiting for a decision on the European Central Bank’s policy to be announced this week.
The Spot Market is Open
Monday, March 7, 2022