Gold reached a peak of $2,064.27 an ounce hours later due to the Russia-Ukraine conflict and surge in global commodities.
The Commodities Boom Causes Gold’s Value to Rise
As the Russia-Ukraine conflict has created a large demand for oil barrels, commodities, and precious metals, gold is now being traded for prices that have not been seen since August 2020. An ounce of.999 pure gold has increased in value by more than 3.15%, while an ounce.999 pure silver gained 4.38%. An ounce of gold hit a high of 2,064.27 per unit at the time of writing. This is after it passed the $2K mark earlier this morning (EST).
After gold hit new highs, gold bug and economist Schiff took to Twitter to praise the shiny yellow material over bitcoin’s current performance. Schiff tweeted Tuesday that gold is up more than $50 an ounce and above $2,050 this morning. CNBC has not even mentioned the record-high. The economist said that CNBC is instead covering bitcoin’s irrelevant rise, which is trading at just $39,000, and is on the brink of a major crash.
Since Monday’s trading session, the U.S., Asian and European equity markets have been struggling as precious metals prices soar. At the time of writing, the Dow, NYSE and S&P 500 have all seen a drop in their value. CNBC’s Wall Street coverage described it as the “worst selloff since October 2020.” A barrel of crude oil rose northbound to $129/unit. The price of crude oil is which has caused gas stations around the world to raise the prices of petroleum per gallon.
The value of aluminum has been rising, as has copper. Palladium, along with nickel, zinc and yellow brass, has reached all-time highs. Alastair George , chief investment strategist at Edison, commented about risk assets falling in value as gold rose. George spoke out about the Russia-Ukraine conflict and said that both Russia and Putin are interested in the war being stopped.
The Edison investment strategist stated that this would result in a rapid reversal in negative sentiment towards risk assets, and significant drops in energy and food prices. “With implied volatility in European equity market already reaching the March 2020 highs, it is too late to panic-sell,” we believe.
