As the United States and Britain announced their energy policies towards Russia, money quickly poured into safe-haven gold. Spot gold and futures gold surged hand in hand after U. S. stocks opened on Tuesday (March 8).
However, on the news of the easing of the situation between China, Russia and Ukraine in the US stock market, Ukrainian President Zelansky said in an interview with ABC that Ukraine is ready to hold dialogue with Russia on such issues as collective security, the "future" of the Donbass region and Crimea.
"I have talked about NATO many times and have publicly sent this message to Russia and President Putin that we are ready to accept assurances from relevant countries that must ensure our national security," Zelansky said. Russia is also among these countries, because Russia is our neighbor. "
Zelansky said that Ukraine must sign collective security agreements with all its neighbors, including Russia, as well as the United States, France, Germany and other countries in the future. After the news, precious metal prices sharply reduced their daily increases.
Specific prices show that the April gold futures price, which is the most actively traded in the gold futures market of the New York Mercantile Exchange, once rose more than $2077 per ounce, but now it has fallen back to $2038, narrowing its increase to about 2 per cent in the day.
Spot gold is now trading at $2032 an ounce, narrowing intraday gains to nearly 1.7 per cent, breaking the $2070 mark at one point and approaching the all-time high of $2072.50 reached in August 2020.
"the surge in energy, grain and industrial metals prices has pushed huge inflationary pressures to the best part, which will continue to be the main basic support behind gold's rally," said David Meger, head of metals trading at High Ridge Futures.
"in addition, we have seen a lot of safe-haven buying in the gold market as major geopolitical concerns have put pressure on the stock market," Meger added. Gold and silver have risen nearly 13% so far this year, and gold and silver are considered a safe hedge at a time of geopolitical uncertainty and rising inflation.
In addition to gold and silver, palladium, which is mainly used for cars, is also close to the all-time high of $3440.76 an ounce set on Monday. Spot palladium has risen by more than 60% so far this year.
Ole Hansen, an analyst at Saxo Bank, said carmakers are still willing to pay any price for the metal to maintain production in the face of shortages.
