Gold has increased to $2,000 an ounce making it the highest since August 2020, as investors run towards what they perceive as safe-haven assets amidst geo-political tension caused by the Russian-Ukraine war.
Last week, the benchmark gold futures rose 4.2% for its largest weekly advance since July 2020. Since August 2020’s high, gold has retraced to as low as $1,600 levels.
However, due to a hawkish federal reserve, global inflationary pressures and now an ongoing war, it has pushed the asset class which many believe to be a safe haven asset to trade above the $2,000 resistance zone.
Gold’s standing as an inflation hedge has also been greatly boosted by the growth in U.S. prices due to ultralow interest rates and trillions of dollars of pandemic-related spending.
Recall that about two weeks ago, Russia began a special military operation into Ukraine, which sparked the beginning of an all-out war between the two nations
