Gold market update
Gold rose to a one-month high on Monday, just shy of the $2,000 per ounce level, as concerns around the Russia-Ukraine conflict and rising inflationary pressures increased safe-haven bids for the
precious metal.
Spot gold rose 0.1% to $1,976.56 per ounce by 2:09 p.m. ET (1809 GMT), after earlier hitting its highest since March 11 at $1,998.10. U.S. gold futures settled 0.6% higher at $1,986.4.
“The little step-up in tension due the Russia-Ukraine war with inflationary pressures across the board boosts safe-haven demand for gold,” said David Meger, director of metals trading at High Ridge Futures.
Gold price this month in AUD/OZ
Rush Gold viewpoints
The sanctions on Russia have thrust gold into the global spotlight. We think this is a major inflection point for gold as the world struggles to come to terms with the limits and consequences of decades of continuous debt expansion.
Read the article: Sanctions Usher In New Era for Gold
Gold in the news
Here are a few articles trending on the subject of gold:
- The B.I.S. is the central bank of central banks, and when they talk, bankers listen. In this April 5 speech (PDF linked) B.I.S. General Manager Agustin Carstens highlights the following:
1. After more than a decade of struggling to bring inflation up to target, central banks now face the opposite problem.
2. We may be on the cusp of a new inflationary era, and the forces behind high inflation could persist for some time.
3. New inflationary forces have emerged with a vengeance. Food, oil and many other commodity prices have soared since the start of the war in Ukraine: B.I.S Inflation Speech 5 April (PDF)
- Prior to the current inflationary tsunami, multiple Nobel economists told us not to worry, that unprecedented government borrowing for stimulus would not unleash price inflation. How wrong they were. This is worth keeping in mind as we ponder galloping inflation here in Australia, after government debt was doubled in the last three years (don’t expect an apology here either): Nobel Economists Line Up To Be Wrong
- It’s not often that we get Wall St. telling us that Wall St’s two biggest products, stocks and bonds, are both likely to underperform. “‘Inflation shock’ worsening, ‘rates shock’ just beginning, ‘recession shock’ coming”, BofA chief investment strategist Michael Hartnett wrote in a note to clients, adding that in this context, cash, volatility, commodities and crypto currencies could outperform bonds and stocks.
BofA says both stocks and bonds will underperform
