Late to the end of Friday’s trading session, gold prices surged after the US stated that Russia could launch military action in Ukraine at any time.
Jake Sullivan, the national security advisor to U.S. President, Joe Biden, said during a press briefing that any American living in Ukraine should leave as soon as possible. There is a credible possibility that a Russian military action could take place even before the Olympics conclude despite a lot of speculation that it would only happen after.
It was three months ago that gold crossed $1,860, and it was six months ago that it rose 2% in a day – long enough in the market for longs to forget.
The gold market rose 2% over the week after a Thursday Comex session that unofficially put it up 3% for the week amid US Fed fears of an imminent Russia-Ukraine war.
It was before the media reported that the United States believed that Russian leader Vladimir Putin intended to invade Ukraine and informed the Russian military of his plans.
Sullivan told a White House press briefing that an air assault into Ukraine may indeed begin next week.
Gold touched $1,867.25 – the day’s high for gold – and crude oil hit $95 a barrel – the day’s high for Brent.
Despite repeated fears of excessive U.S. rate hikes to deal with soaring inflation, gold’s ability to hold above the key $1,800 mark has proven beneficial to longs in the market