The price of gold is close to 2000 USD per ounce on the international market
The price of gold hit a five-week high on Monday as war in Europe, high inflation and the risk of a recession in the United States further bolstered demand for the safe-haven asset.
Spot gold rose 0.7% to $1,988.15 an ounce at noon ET, closing in on the $2,000 level last seen in early March. US gold futures rose 0.8% to trade at $1,991.00 an ounce in New York.
After capping a second weekly gain, bullion soared as high as 1% earlier in the day on higher oil and natural gas prices.
The possibility of a de facto European Union embargo on Russian gas and the threat of some restrictions on crude in Europe’s next sanctions package have lifted both commodities, adding to already high oil prices. raw materials in the world. This in turn drove up the demand for gold as a hedge against accelerating inflation.
“The small escalation in tension due to the Russian-Ukrainian war with inflationary pressures across the board is boosting demand for safe-haven gold,” David Meger, head of metals trading at High Ridge Futures, told Reuters.
Concerns about the economic hit from covid restrictions in China also supported gold prices, Meger added.
Gold’s advance came despite a jump in benchmark 10-year U.S. Treasury yields to the highest since December 2018 and a stronger dollar, which generally dampen foreign buyers’ appetite for gold.
“Gold is bolstered by high inflation and heightened geopolitical risk,” Kelvin Wong, an analyst at CMC Markets in Singapore, said in a Bloomberg note.
Prices breaking above the key medium-term technical resistance level of $1,975 “likely pulled momentum-based traders into the bullish camp,” Wong said.
