Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rallied 0.7% to close near $1,901 as the escalating war in Ukraine and powerful new sanctions against Russia drove investors into safe-haven assets. The metal finished February with a gain of 5.8% for its biggest monthly rise since last May.

Meeting stiff resistance from Ukrainians, Russia intensified its unprovoked invasion, shelling cities and killing hundreds of civilians. Putin ordered nuclear weapons to be readied for deployment.

Over the weekend, the US and NATO members were joined by neutral EU members like Switzerland, Finland, and Sweden in levying new sanctions that isolate Russia from global financial markets and further hamstring its economy.

The uncertainty created by the war and ensuing sanctions drove global risk-off sentiment. The Dow, Global Dow, and S&P 500 all fell more than 1%.

Benchmark 10-year Treasury yields receded under 1.9% as investors flocked toward the safety of US government bonds. Lower yields support gold by decreasing the opportunity cost of holding it instead of bonds.

Oil prices spiked higher on fears of supply disruptions, with global benchmark Brent crude climbing 3.1% to close above $100 per barrel for the first time since 2014. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were mixed on the day but higher for the month. Silver rose 1.5% for a monthly increase of 8.8%. Platinum slid 1.1% today but rose 1.8% this month. Palladium jumped 5.9% on the day and 6.3% this month.

At the Comex close: April gold gained $13.10 to $1,900.70; May silver picked up 35 cents to $24.37; April platinum lost $11.40 to $1,038.70; and June palladium surged $138.90 to $2,504.60 an ounce, driven by worries of supply disruption out of Russia, a major supplier.