Gold prices hit their highest intraday highs since September 2020 on Thursday, driven by Russia’s invasion of Ukraine. On the other hand, the weakness of the US and EU’s threat of sanctions caused the markets to recover today and gold prices to fall below $ 1,900. Analysts’ market comments and forecasts cryptocoin.com compiled for our readers.
Gold emerges from a year-and-a-half ‘bullish consolidation’, according to Paul Wong
Investors worry that recent geopolitical actions will destabilize economies and intensify inflationary pressures. However, the fact that Russia invaded Ukraine and started the escape to safe harbors supports the precious metals. Sprott market strategist Paul Wong evaluates the developments and their impact on the markets as follows:
The markets are in a completely risk-averse mode. Gold emerged from a year-and-a-half ‘bullish consolidation’ and tested the key $1,965 resistance early Thursday. We continue to view gold as a safe-haven asset. There has been a significant reduction in investment in gold last year and is now in the process of reversing.
“Gold has the potential to rise above $2,000 if Russia expands its occupation.”
Jeff Wright, chief investment officer at Wolfpack Capital, says gold has the potential to reach over $2,000 if Russia expands its occupation beyond Ukraine and comes into conflict with NATO forces in the Baltic or Poland.
Juan Carlos Artigas: Gold is performing as investors expected
Russia is among the world’s largest gold producers, but at this point, the uncertainty in the financial markets fed the investment demand for the precious metal. Juan Carlos Artigas, head of global research at the World Gold Council, comments:
Gold is a well-established hedge against systemic risks and unexpected market events. This is no exception. The precious metal is performing as investors expected and has a role as a strategic asset. It is thus further fueled by increased demand due to dynamics beyond geopolitics, including high inflation and general market volatility.
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