Gold flirts with record highs

3.16.22 - Inflation is Not "Putin's Fault"

Gold last traded at $1,904 an ounce. Silver at $24.70 an ounce.

NEWS SUMMARY: Precious metal prices steadied Wednesday as investors awaited an expected tiny .025% interest rate increase. U.S. stocks rose as traders tried to build on the previous gains, while Wall Street awaited the Fed's latest monetary policy decision.

Axios--"With inflation surging, gold - the traditional hedge on rising prices - has flirted with new record highs.

The big picture: The yellow metal is traditionally viewed as a safe haven during times of crisis, especially by investors in emerging markets.

Russia is also one of the world's largest gold producers, and recent sanctions on the country have made buyers jittery about supply - leading some to stock up.

Worth noting: The crippling sanctions highlight the risks central banks face in holding their reserves in dollars and other foreign currencies.

What they're saying: 'We expect Central Bank gold demand to reach its historical high level as [central banks] globally have both strong diversification and geopolitical reasons to shift reserves into gold,' Goldman Sachs analysts wrote in a note this week."