Gold prices have crossed $2,000 an ounce for the first time in more than a year as investors flocked to safe havens amid the worsening crisis in Ukraine.
The metal was trading at $2,004 an ounce, up 1.97% Monday, an increase of 9.65% year to date, according to FactSet.
The precious metal was reacting to increased geopolitical tensions as Russian President Vladimir Putin vowed to press ahead with his invasion of Ukraine unless Kyiv surrenders.
On Friday, gold had risen 1.8% to $1,970 an ounce as traders priced in an escalation of the war over the weekend.
Jeffrey Halley, senior market analyst at Oanda, wrote in a note: “Gold managed to nibble at $2000.00 an ounce this morning, rising with oil on stagflation fears after weekend developments.
“There is likely to be plenty of barrier option-related selling around the $2000.00 region initially, making gains challenging initially. Additionally, gold appears to be following oil prices today, so if oil corrects lower again, the fast-money longs are likely to quickly retreat.”
He added that once $2,000 an ounce is cleared, the path to $2,100. will be laid open.
Russ Mould, investment director at broker AJ Bell said: “It is worth watching the gold price which is now flirting around the $2,000 per ounce level.
“Should Russia see a slump in income from commodity sales, there is a real chance it could sell down some of its gold reserves to help fund the war in Ukraine. The West may not want to buy Russian gold, but China might be interested if the price was right.”
Write to Rupert Steiner at [email protected]
