Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinExtending last week's 4.1% rally, gold surged another 1.5% to settle near $1,996 as the escalating Ukraine crisis hammered stock markets and stoked safe haven demand. The metal reached as high as $2,007 in intraday trading before slipping back to mark its highest finish since August 2020.

As Russia pressed its unprovoked invasion of Ukraine, shelling civilian neighborhoods in major cities and forcing 1.7 million refuges to flee, Western powers assessed new sanctions against Russian institutions, corporations, and individuals.

An increasing number of global financial institutions are cutting ties with Russia, including most major US accounting firms, and European asset managers have stopped buying Russia securities. The ruble and Russian bonds plunged fallen record lows.

And today, Secretary of State Anthony Blinken announced the US and is considering an embargo of Russian oil in coordination with European allies except Germany.

Global equity markets plunged as investors continued to shed risk. The Dow and Global Dow lost 2.4% and 2.2%, respectively, while the S&P 500 dumped 3% and the Nasdaq 3.6%.

Oil prices surged further on deepening supply concerns. US benchmark WTI crude rose 3.5% to more than $119 per barrel, the highest finish in 13 years. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were lower, with silver sliding 0.3% while platinum dipped less than 0.1% and palladium lost 2.7%.

At the Comex close: April gold gained $29.30 to $1,995.90; May silver dipped 7 cents to $25.72; April platinum edged down 20 cents to $1,116.60; and June palladium dropped $80 to $2,901.90 an ounce.