The sounds of boots from Ukraine and inflation are pushing the yellow metal above 1,900 dollars.
The price of gold climbed over the week to a new high since June at $1,902.48, buoyed by rising geopolitical risks and soaring inflation.
“The primary source of support for gold is rising prices around the world as investors seek to protect their purchasing power once morest depreciating fiat currencies,” says Fawad Razaqzada, analyst at ThinkMarkets.
Inflation is at multi-decade highs in many parts of the world. In the euro zone it stands at 5.1%, a historic high since the European statistics office published this measurement.
In addition, “the events on the Ukrainian border encourage investors to seek safe havens” such as gold, underlines Craig Erlam, analyst at Oanda.
“Gains remain vulnerable to any easing at the Ukrainian border,” says Ipek Ozkardeskaya of Swissquote.
The signals sent are contradictory: bombings are underway on Friday near Stanytsia Luganska, a city in eastern Ukraine under the control of government forces, AFP journalists noted on the spot.
The Kremlin meanwhile promises the return to their barracks of troops engaged in maneuvers on the outskirts of Ukraine.
Around 4:30 p.m. GMT (5:30 p.m. in Paris), an ounce of gold cost 1,894.80 dollars, once morest 1,858.76 dollars seven days earlier at the end of trading.
Nickel and lead rise
The price of nickel rose this week on the London Metal Exchange (LME), approaching a multi-year high reached in January.
“The nickel market still looks very tight,” said Daniel Briesemann, analyst for Commerzbank.
“The rise in prices is likely due to concerns regarding supply disruptions, with the Ukrainian crisis appearing to continue to escalate,” he continued.
Russia is one of the main producers of aluminum and nickel. Exports of raw materials might also be affected in the event of sanctions once morest the country.
The United States now fears an attack from Ukraine “in the coming days”, while Russia brushes aside these accusations and announces new troop withdrawals from the Ukrainian border.
On the LME, a ton of nickel for delivery in three months traded at 24,190 dollars on Friday, once morest 23,051 dollars the previous Friday at the close.
Lead prices also continued to rise, with Chinese production down month-on-month, analysts at Marex said.
A ton of lead for delivery in three months traded at 2,348 dollars on the LME on Friday around 4:30 p.m. GMT, once morest 2,279 dollars last Friday at the close.
The sugar melts
Sugar prices were down this week, held back by production surpluses, despite present demand.
The markets of “New York and London were a little lower in the exchanges”, because “of a surplus of production”, explains indeed Jack Scoville, analyst of Price Group.
Usually, high oil prices encourage the use in Brazil, the world’s largest exporter, of sugar cane to produce ethanol, which has become more competitive, which reduces the amount of sugar available and boosts prices.
But demand for fuel oil in Brazil remains “particularly weak”, note analysts at Rabobank.
The demand for sugar is “still good, but supplies might increase as less ethanol is produced”, continues Jack Scoville.
In New York, a pound of raw sugar for delivery next March was worth 17.70 cents, down from 17.81 cents seven days earlier.
In London, a ton of white sugar for delivery in the same month was worth 486.40 dollars once morest 501.40 dollars the previous Friday at the close.
