Safe-haven assets were boosted over the past weeks, over fears of a Russian attack against Ukraine. On Monday, Kiev sought an urgent meeting with Moscow, to discuss Russia’s buildup of military assets close to Ukraine’s borders. U.S. Secretary of State Anthony Blinken warned that Russia could launch an attack against Ukraine even within the week, and warned US citizens to leave Ukraine. Similarly, the British Foreign Office has advised British citizens in Ukraine to leave the country, while there were still commercial means available.
On Tuesday however, the Russian Defense Minister stated that some troops had returned to their base after completing drills near the Ukrainian border. The move raised hopes of de-escalation of the crisis, and the price of gold plummeted.
Gold price peaked above $1,879 per ounce early on Tuesday, its highest level since November. The price of gold retreated heavily though, after the announcement that Russian troops would withdraw from the Ukrainian border, falling as low as $1,844 per ounce and is currently testing the $1,853 per ounce resistance. If the price of gold rises again, it may find further resistance at $1,877 per ounce, while if it decreases, support may be found at 1,782 per ounce.
If geopolitical tensions rise again, they might also drive the price of other commodities up, especially energy-related assets, further increasing inflation. The increase in oil price in recent months has also been driving inflation up, benefitting gold prices. Geopolitical tensions in the region might also serve to drive the price of other commodities up, especially energy-related assets, contributing to rising inflation rates.
The content provided in this material and/or any other material that this content is referred to, whether it comes from a third party or not, is for information purposes only and shall not be considered as a recommendation and/or investment advice and/or investment research and/or suggestions for performing any actions with financial products or instruments, or to participate in any particular trading strategy and cannot guarantee any profits. Past performance does not constitute a reliable indicator of future results. TopFX does not represent that the material provided here is accurate, current, or complete and therefore shouldn't be relied upon as such. This material does not take into account the reader's financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of TopFX, no reproduction or redistribution of the information provided herein is permitted.
Fill in the registration
form and click
Once you are in the client secure area, please proceed with uploading your Proof of Identity and Proof of Residence.
When your live account is approved, you can deposit funds and start trading on your chosen platform!
The website you are now viewing is operated by TopFX, a trade name of Fondex Limited, an entity which is regulated by the Financial Services Authority (FSA) of Seychelles with a Securities Dealer License No SD037 that is not established in the European Union or regulated by an EU National Competent Authority.
If you wish to proceed, please confirm that your decision will be at your own exclusive initiative and that no solicitation has been made by TopFX or any other entity within the Group.
These cookies fall under the following categories: essential, functional and marketing cookies. Marketing cookies may also include third-party cookies.