Gold futures closed nearly $30 higher on Monday (March 5) as investors continue to bet on gold as a safe haven in uncertain times. The situation in Ukraine could drag on for a long time, as no diplomatic agreement has yet been found between the two countries.
- Gold futures were up $29.3, or 1.49%, at $1,995.9 an ounce. This is the highest closing level since August 17, 2020.
- Silver was down 6.9 cents, or 0.27%, at $25.72 an ounce.
- The platinum was up 20 cents, or 0.02%, at $1,116.6 an ounce.
- The palladium contract was down $80, or 2.7%, at $2,901.90 an ounce.
With concerns over the Russian-Ukrainian war and the impact of international sanctions against Russia, investors are flocking to gold as a safe haven.
Recently, U.S. Secretary of State Antony Blinken stated that the United States and its European allies are considering the possibility of stopping oil and natural gas imports from Russia. In this way, Western countries intend to stop funding the Russian military. Many criticize that the purchase of commodities from Russia indirectly finances the Russian military.
Analysts believe that the price of gold will continue to rise if the situation in Ukraine remains unchanged. The gold price will probably reach the $2,100 mark and mark a new all-time high.
The SPDR Gold Trust Fund, the world’s largest gold exchange-traded fund, increased its gold holdings last Friday to the highest level since March 2021.
Moreover, investors continue to monitor the situation in Ukraine. The International Court of Justice (ICJ) announced that Russia refused to participate in yesterday’s ICJ emergency hearing, which followed Ukraine’s request for an injunction requiring Russia to halt its military operations in Ukraine.
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Tuesday, March 8, 2022