Russia’s occupation of Ukraine has passed for a week and the occupation continues with all its violence. The sanctions imposed by the West in response to the invasion, on the other hand, collapsed the Russian economy. All these geopolitical and economic risks led investors to safe havens and the gold price closed the week close to $1,970. Analysts’ market comments and gold price predictions cryptocoin.com compiled for our readers.
Shaun Usmar: In a moment like this, gold really has safe-haven status
According to BMO Capital Markets commodity analyst Colin Hamilton, the strong gold price will continue through 2022 due to a combination of macro and micro factors. Colin Hamilton also suggests that inorganic growth is starting to enter the conversations of metals manufacturers and that more mergers and acquisitions are on the way.
“Gold really has safe-haven status at a time like this,” said Shaun Usmar, CEO and founder of Triple Flag Precious Metal, saying that gold performed well during one of the most serious geopolitical events in decades.
After Russia invaded Ukraine, gold began to rise. The increasing sanctions of the West against Russia are inflicting heavy losses on the Russian economy. As uncertainties dampened risk appetite, safe-haven demand increased and gold closed the week at $1,970. On the other hand, the leader of the crypto market Bitcoin fell below $ 40 thousand. Shaun Usmar comments:
All this rhetoric about Bitcoin and crypto being the new digital gold is empty. Gold really has that safe-haven status right now.
“The invasion of Ukraine will continue to support the expectation for the gold price”
Considered a safe store of value during uncertainties like war, bullion has largely ignored a 1% jump in the dollar as an alternative safe haven and the possibility of a Federal Reserve rate hike later this month. Saxo Bank Analyst Ole Hansen comments in a note:
The Russia-Ukraine crisis will continue to bolster the prospect for higher precious metal prices. This is due not only to a potential short-term safe-haven offer that will tide, but more importantly what this tension will mean for inflation, growth and central bank rate hike expectations.
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