By Swann Collins, investor, writer and consultant in international affairs. Eurasia Business News – February 22, 2022
Gold prices hit today $1,913 per troy ounce amid increased geopolitical tensions around Ukraine, one day after Russia officially recognized the separatist republics of Donetsk and Luhansk, in conflict with Ukraine since April 2014.
On the sidelines of the soaring energy, transport and consumer prices in the United States and Europe, geopolitical tensions in Europe and Asia are adding to the uncertainties and drive up gold prices.
High annual inflation in the United States (7.5% in January 2022), the Euro zone (5.1% in January 2022) and in Russia (8.73% in January 2022) drives the fears of investors and families. They are seeking hedge to protect their wealth and purchasing power.
The political confrontation between Russian and NATO reached another step on February 21, when the Russian President Vladimir Putin recognized the separatist republics of Donetsk and Luhansk and sent “Russian peacekeepers and tanks to protect civilians” in the Donbass region.
Stocks markets fell on February 22, following the news from Ukraine. Markets are also volatile since investors are waiting for several rate hikes by the U.S. Federal Reserve in 2022, in an attempt to lower high inflation. To secure their wealth, investors have been buying physical gold over the past weeks, driving up gold and silver prices. Moreover, the recent news from Canada where federal government authorised private bank to freeze banking assets of political opponents further fuelled the dynamic of growing gold prices.
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On February 10, gold prices hit $ 1,827 per troy ounce today, gaining 1.05% in one day, while silver prices reached $ 23.19 per ounce, gaining 2.98%.
On February 22, gold prices reached $ 1,913 per troy ounce and stabilized at $ 1,899 at closure time. Silver perices hit $24.14 per ounce, gaining 0.89%.
Palladium prices should also grow in coming days, as the White House has taken new economic sanctions against Russia, which was in 2020 the leading exporting country of palladium worldwide, with exports amouting to some 6.4 billion U.S. dollars.
About the author : Swann Collins is an investor, writer and consultant in international affairs. He has published over 100 articles specializing in economy, finance and investments.
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© Copyright 2022 – Swann Collins, investor, writer and consultant in international affairs.
Eurasia Business News 