Gold price pushing $1,950 per ounce on safe haven demand

Precious metals prices have continued to trade higher today as Russia’s invasion of Ukraine intensifies, pushing investors to the ‘safe haven’ assets gold and silver.

April gold futures increased to US$1948.50 in early US trading, while May comex silver increased to $25.295 per ounce, after news emerged that Russia had attacked Europe’s largest nuclear power plant in Eastern Ukraine.

Investors will wait with bated breath as the conflict looks set to rage on over the weekend. Russia’s military action has threatened the supply of energy, grains and metal from Eastern Europe, while the resulting surge in oil prices has raised concerns about global growth and inflation risks.

“Hedge funds are betting on an extended rally in crude which at least one says could send prices to $200 a barrel,” Bloomberg said in a daily email dispatch. “In Europe, natural gas prices remain extremely volatile as authorities prepare for severe economic consequences should Russia cut off supplies.”

In the face of perhaps the biggest geopolitical crisis of the last 30 years, investors have sought out bullion as a store of value, with inflows into gold backed exchange-traded funds (ETFs) amounting to about 34 tonnes so far this week, according to initial data compiled by Bloomberg.

@RGNonline