Again, gold closed above $ 2,000

Gold returned to territory above $ 2,000 an ounce on Thursday as Russia stepped up its offensive, two weeks after launching its invasion of Ukraine, at a time when US inflation is proving persistent, at a 40-year high. February.

The strength of yellow metal prices comes at a time when many analysts predict that escalating hostilities in Eastern Europe will lead central banks to softer moves to higher interest rates, with the eurozone suffering the biggest “shadow” of economic growth since events of the last two weeks.

Gold has a “huge momentum”, says Naeem Aslam, chief market analyst at AvaTrade. “Traders are just not sure yet if they are ready to back up higher-risk assets,” as prices move higher.

The Russia-Ukraine war is the key factor in driving gold prices higher and geopolitical tensions do not appear to be in a recession any time soon, he added, speaking to MarketWatch.

He predicts that the price of gold will “reasonably” move above $ 2,500 in the next few months.

On Wednesday, the April delivery gold earned $ 12.20 or 0.6%, closing at $ 2,000.40 per ounce. The May silver gained 44 cents, or 1.7%, to $ 26,256 an ounce.

Gold even expanded its profits after the announcement of the formation of the consumer price index in the US to 7.9% on an annual basis in February 2022, to the highest levels in 40 years (since January 1982).

In the other metals, the copper May gained 1.8% to $ 4,653 a pound, h April platinum fell 1.1% to $ 1,095.20 an ounce, while palladium June closed at 2,920.50 per ounce, down 1%.