Gold Climbs to Five-Week High as War and Inflation Boost Safe Havens (NYSEARCA:GLD)
Gold futures briefly surpassed $2,000/oz on Monday, rise to the best level since mid-Marchlike Russia’s The ongoing invasion of Ukraine offers no abatement from global inflation and supports safe haven demand for the metal.
Comex Gold settled for June delivery (XAUUSD:CUR). +0.6% at $1,986.40/oz, the highest settlement for a most active contract since March 10 after reaching as high as $2,003/oz while silver (XAGUSD:CUR) closed in May +1.8% at $26.15/oz.
ETF’s: (NYSEARCA:GLD), (GDX), (IAU), (NUGT), (PHYS)
“Gold benefits directly from the Inflation effects of the Russia-Ukraine conflictwhich are now more significant in terms of the market than direct military developments,” said Stephen Innes of SPI Asset Management.
Prices moving above the key intermediate-term technical resistance level of $1,975/oz will have “probable pulled momentum-based traders back into the bullish campsaid Kelvin Wong, analyst at CMC Markets in Singapore.
Gold stocks ended mixed, but Iamgold tumbled 8% after BMO downgraded shares on expectations that the miner’s review of project scope and budget at Côté would come back negative compared to previous forecasts.