Gold, the conflict in Ukraine inflates prices: will it be the real and only safe haven asset in the coming years?
The safe haven asset par excellence returns to the fore. With the crisis in Ukraine caused by the war force of Putin, investor attention has returned to gold. The price of the noble metal par excellence was already growing before the crisis in Eastern Europeand with the invasion decided by Russia has strengthened the rises exceeding two thousand dollars an ounce.
The war inflates the price of gold, the Ukraine effect
“Gold prices were resilient in January and early February, despite strong increases in US real interest rates, which usually weigh on these prices. This is partly due to the geopolitical stress from the situation Russia / Ukraineand this could continue to support upward movements if the conflict worsens or if sanctions do not have the desired effect ”.
To declare it, James Lukefund manager Schroder ISF Global Bondwho continues: “Before the current crisis,” he explains, “the price of gold was around $ 1,800 an ounce, with no major improvements since the end of 2020”.
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