Gold prices extended their upward trend in Thursday’s trading, to jump $60, with the escalation of geopolitical tensions in Eastern Europe.
And Russian President Vladimir Putin’s decision to move troops to Ukraine pushed the prices of the yellow metal to rise by more than 3%, as investors flocked to safe havens.
Gold Prices Today
The price of gold futures contracts – for delivery in April – rose by 3.2%; equivalent to $61.50, to reach the level of $71.90 an ounce.
The spot price of the yellow metal also rose by 2.80%, or $52.49, to reach $1959.50 an ounce.
At the same time, the price of silver futures contract – for May delivery – rose by more than 4%, recording $ 25.33 an ounce.
While the spot platinum price rose by 1.9%, or $32.08, at $1,100.97 an ounce, and the spot palladium price rose by 7.6%, or $189.48, to record $2,709 an ounce.
Meanwhile, the dollar index, which monitors the performance of the US currency against a basket of 6 major currencies, rose by 0.9% to reach 97.036 points.
Officials and media said that Russian forces fired missiles at several Ukrainian cities and landed troops on its southern coast.
Gold prices, considered a safe store of value during turbulent times, are up about 8% in February so far; The Russian-Ukrainian crisis has hampered risk appetite, and the metal is heading for its best monthly performance since July 2020.
“Gold is a safe haven asset along with the USD and this is its day, and we could definitely see all-time new highs in gold,” said Jeffrey Haley, chief market analyst .
Halley added that prices may continue to rise towards resistance at $1960 an ounce and test $2000 in the next few sessions, Reuters reported.
In conjunction with the rise in gold prices, the dollar and oil prices rose, while global stocks and US bond yields fell.
“It is not only the fog of war on gold, but also inflation, especially with oil reaching $100 a barrel, and that is why gold has become a defensive product,” said Stephen Innes, managing partner at SBI Asset Management.
“There is a turn to gold to hedge at a relatively cheap rate, believe it or not, at that price,” Innes added.