Russia-Ukraine Tensions Power Gold to Eight-Month Highs

2.23.22 - Safe-Haven Gold at Eight-Month Highs

Gold last traded at $1,908 an ounce. Silver at $24.55 an ounce.

NEWS SUMMARY: Precious metal prices rose to fresh 8-month highs Wednesday on safe-haven buying. U.S. stocks traded lower with the S&P 500 falling further into correction territory amid escalating tensions between Russia and Ukraine.

 -WSJ--"Escalating tensions between Russia and Ukraine have boosted gold prices to their highest levels since June.

Gold has gained in 12 of the past 15 sessions, including seven straight through Monday, lifted by demand from investors nervous that an outbreak of war could spark losses in other investments. Investors prize gold for its stability in times of turmoil....

'Investors are looking for a geopolitical hedge,' said Matt Miskin, co-chief investment strategist at John Hancock Investment Management. 'The stars are aligning in essence for a gold breakout.'

Further increases in tensions could send gold above its August 2020 record close of $2,051.50 within months, Mr. Miskin said. Bank of America analysts recommended in a recent note that investors should consider buying more gold if prices break out of a range between $1,860 and $1,880, also predicting the potential for new highs.

Investors put money into precious-metal mutual- and exchange-traded funds for the fifth consecutive week through Wednesday, according to data from Refinitiv Lipper. That marks the longest streak since early August 2020, when funds recorded net inflows for 20 consecutive weeks.

The recent climb has broken gold prices out of a 2022 rut. Expectations for rising interest rates have driven U.S. government bond yields to pre-pandemic levels, sparking stock volatility."