On Tuesday, the price of gold soared to new heights as an ounce of the precious metal surpassed $2K per ounce during the early morning trading sessions (EST). Hours later, gold tapped a high of $2,064.27 per ounce as the Russia-Ukraine war and global commodities surge has fueled demand.
Gold’s Value Surges Higher Amid Commodities Boom
Gold is exchanging hands for prices not seen since August 2020, as the Russia-Ukraine war has caused a significant demand for barrels of oil, commodities, energy stocks, and precious metals. During the last 24 hours, an ounce of .999 fine gold has jumped over 3.15% in value, and an ounce of .999 fine silver spiked by 4.38%. At the time of writing, an ounce of gold has tapped a high of $2,064.27 per unit after it surpassed the $2K zone earlier this morning (EST).
Of course, after gold tapped fresh new highs, the gold bug and economist took to Twitter to praise the shiny yellow metal over bitcoin’s current performance. “Gold is up over $50 per ounce this morning, above $2,050 for the first time ever,” Schiff tweeted on Tuesday. “Meanwhile CNBC hasn’t even mentioned the record-high. Instead, the network is covering the irrelevant rise in bitcoin, which is still trading well below $39,000 and on the verge of a major crash,” the economist added.
As the price of precious metals soar, Asian, European, and U.S. equity markets have been floundering since Monday’s trading sessions. Nasdaq, the Dow, NYSE, and S&P 500 are all down in value at the time of writing. CNBC’s Wall Street coverage called it the “worse selloff since October 2020.” In addition to the massive jump in value both gold and silver experienced during the last 24 hours, a barrel of crude oil rallied northbound to $129 per unit. The price of crude is causing gas stations worldwide to increase the prices of petroleum per liter/gallon.
Aluminum has been soaring in value too, copper is surging, palladium has tapped all-time price highs, alongside nickel, zinc, yellow brass, iron, wheat, and corn. Speaking with the news outlet sharesmagazine.co, the chief investment strategist at research house Edison, Alastair George commented on risk assets dropping in value while gold surged. George highlighted the Russia-Ukraine war and that its “both Putin’s and Russia’s interest for the war to be stopped.”
“This would lead to a rapid reversal of negative sentiment towards risk assets and significant falls in energy and food prices,” the Edison investment strategist added. “With implied volatility in European equity markets already matching the highs of March 2020, it is already too late to ‘panic-sell’, in our view.”