Gold price approaching record high as Ukraine, inflation risks mount www.mining.com
Gold extended its blistering rally on Tuesday towards an all-time high as investors made a beeline for the haven metal on mounting fears about the Ukraine crisis and rising inflation.
Spot gold surged 3.5% to $2,068.07 an ounce by 12:10 p.m. ET, within touching distance of its peak of $2,072.50 set in August 2020. US gold futures also jumped 4.0% to $2,076.70 an ounce in New York.
“The combination of roaring energy prices, grain prices, base metal prices is culminated in dramatic inflationary pressures that continue to be the major underlying support behind gold moves higher,” David Meger, director of metals trading at High Ridge Futures, said in a Reuters report.
“In addition, we’re seeing significant amount of safe haven bids in the gold market as equity markets have come under pressure due to major concerns on the geopolitical front,” Meger added.
Soaring oil prices and the Ukraine war have slammed appetite for riskier assets. US President Joe Biden announced on Tuesday a ban on Russian oil, with the UK also expected to follow.
Bullion, which has risen nearly 13% this year, is considered a safe store of value during times of geopolitical uncertainty and rising inflation.
Meanwhile, palladium gained another 2.0% after hitting a new high of $3,440.76 an ounce on Monday.
(With files from Reuters)
Published Date:2022-03-09