Gold prices reached two thousand dollars for the first time in a year and a half as investors sought a safe haven in light of the worsening Russian-Ukrainian crisis, while fears of disruption to palladium supplies pushed to an all-time high yesterday.
And gold rose in spot transactions 1.1 percent to $ 1990.20 an ounce by 07:51 GMT, following hitting its highest level since August 19, 2020, recording $ 2000.69 earlier in the session. And US gold futures rose 1.4 percent to 1993.30 dollars. “Gold will likely see strong moves around the $2,000 level initially but once that ends and assuming the Ukrainian position remains unchanged, it will quickly move towards the $2,100 region, and from there to completely new highs,” said Jeffrey Haley, chief analyst at OANDA. And Wang Tao, a “Archyde.com” technical analyst, expected that gold in spot transactions would continue to rise towards $2,065 an ounce.
Palladium jumped 8.7 percent to $3,263.25 an ounce and is on track to record its strongest one-day rise since March 2020, following hitting an all-time high earlier in the session at $3,315 an ounce.
Russia produces 40 percent of the world’s production of the metal used in the automotive industry.
And silver rose in spot transactions 0.5 percent to $ 25.79 an ounce, while platinum jumped 2.7 percent to $ 1151.51.
In a related context, the single European currency briefly fell below par with the Swiss franc for the first time in seven years yesterday, and settled at a 22-month low once morest the US dollar, as rising crude oil prices fueled fears that stagflation would sweep Europe.
The war in Ukraine and harsh international sanctions imposed on Moscow sent Russian assets into sharp decline, while prices for Russia’s exports such as precious metals and oil and gas soared at a time when the global economy is already under inflationary pressures. Europe is the most vulnerable region to this, because it imports up to 40 percent of its natural gas consumption from Russia, and the single currency has become increasingly inversely linked to oil prices. . In early trading in London yesterday, the European euro fell by as much as 0.5 percent to $1.0874, very close to the $1.0822 level it recorded in Asian trading and was its lowest since May 2020. The euro’s decline has reached regarding 4 percent since Russia started its She describes it as a “special military operation” in Ukraine, and is no longer far from testing its 2020 low of $1.0636. The euro fell to its lowest level once morest the Japanese currency, recording 124.39 yen, and touched the lowest level since mid-2016 once morest the pound sterling at 82.01 pence. Against the Australian currency, the euro lost more than 10 percent in regarding a month. In this context, the Turkish lira continued its decline for the sixth consecutive day during yesterday’s trading, in light of the growing fears of the continued rise in the inflation rate in the country, especially as a result of the rise in oil prices in global markets once morest the backdrop of the Russian-Ukrainian war.
And the “Bloomberg” news agency indicated that the value of the lira fell once morest the dollar yesterday by 1.3 percent to 14.3899 pounds per dollar, adding that “the shock of the rise in the oil price is expanding in various markets yesterday, with investors assessing the risks of the continuation of global oil prices for a long time.”
At the same time, the cost of insuring Turkish bonds once morest default has risen on the back of geopolitical risks.
The Turkish 10-year bond yield rose to more than 9 percent for the first time since April 2020.
