Gold price hits 1-month high due to Ukraine war
Crisis Ukraine making investors insecure and moving towards the safe-haven asset, gold.
According to Reuters, spot gold price increased 0.8 percent to $1,989.65 per ounce, at 7:23 am GMT (14:23 local time) on April 18, reaching the highest level since March 11. US gold futures were up 0.9% at $1,993.40.
Ilya Spivak, currency strategist at DailyFX, said there appeared to be risk aversion in the market due to the impact of the situation. Russia-Ukraineand warned that thin liquidity could boost gold prices.
Ukrainian officials said the missile hit the city of Lviv in the early morning of April 18. Explosions have also rocked other cities in Ukraine as Russian forces continue their offensive after claiming almost complete control of the strategic southern port of Mariupol.
Bullion is considered a safe store of value in times of economic and political crisis. While the Russian-Ukrainian hostilities continue, there is still no sign of progress in the wars peace negotiations between two countries.
In fact, Ukraine’s Foreign Minister Dmytro Kuleba said that recently there has not been any diplomatic contact between Russia and Ukraine at the level of the Ministry of Foreign Affairs. Mr Kuleba added that the situation in the port of Mariupol – which he described as “catastrophic” – could be a “red line” on the road to negotiations.
The war in Ukraine, coupled with rising inflation, is signaling a recession and is weighing heavily on global risk sentiment.
In addition, the measures China’s blockade to prevent the spread of COVID-19 and the potential embargo of the European Union (EU) with Russian gas could raise concerns about inflation and growth.
Expectations of more aggressive policy tightening by the US Federal Reserve, coupled with fresh increases in US Treasury yields, could limit gains in zero-yield gold. Investors will focus on speeches by Fed Chairman Jerome Powell and Federal Open Market Committee (FOMC) member James Bullard later this week. Speeches are expected to provide details on possible monetary policy action by the Fed.
All of these developments are seen as another factor boosting gold’s appeal as a hedge against rising costs.
While another test at $2,000 an ounce may be the path of least resistance for gold, $2,100 is the larger, stronger number to watch, according to strategist Spivak.
According to Reuters technical analyst Wang Tao, yellow The spot can rally between $1,998 and $2,012 per ounce as it has broken through resistance at $1,984 per ounce.
Also in trading on April 18, spot silver rose 0.7% to $25.85 an ounce, platinum gained 1.7% to $1,006.27 and palladium gained 1.4% to $2,400.60.
at Blogtuan.info – Source: laodong.vn – Read the original article here