World gold price spiked because of Ukraine tension

 World gold price spiked because of Ukraine tension

Each ounce increased by tens of dollars to a 2-month peak due to concerns about inflation in the US and tensions between Russia and Ukraine.

Closing the session on 11/2, the world spot gold price increased by more than 32 USD to 1,859 USD an ounce. During the session, the price sometimes rose to $1,865 – the highest in the past 2 months. In total for the whole week, prices increased by nearly 3%.

The demand for safe-haven gold rose yesterday after White House national security adviser Jake Sullivan warned Russia could attack Ukraine at any time and would start with an air strike.

The world gold price yesterday increased by more than 30 USD.

The world gold price yesterday increased by more than 30 USD.

“Gold is receiving a haven inflow, due to heightened geopolitical risks and concerns over rising interest rates on global growth,” said Chris Gaffney, head of global markets at TIAA Bank. Gold is seen as an inflation hedge and a safe store of value in times of political and financial turmoil.

Tensions in Ukraine also made US stocks sell off even more. The main indexes on Wall Street were already lower from Thursday when the country posted the highest January inflation in 40 years.

The US Federal Reserve (Fed) is likely to raise interest rates by 0.5% at its policy meeting next month. Fed President St. Louis James Bullard said he wants to raise 1% in the next 3 policy meetings.

"Gold is starting to attract investors looking for asset protection as the Fed tightens policy," said Edward Moya, senior market analyst at OANDA. Russia takes military action."