The Russia-Ukraine conflict has escalated over the past few hours. Subsequently, gold has climbed to around $1,915, the immediate vicinity of last June’s high. Strategists at Commerzbank expect XAU/USD to post further gains as Ukraine situation looks increasingly alarming.
Gold as safe haven
“If the Ukraine crisis escalates further, we believe that gold will remain in demand amid the increased risk aversion, meaning that its price will probably make further gains.”
“The yellow metal is profiting from the slide on the stock markets and the considerable fall in bond yields – both being indications of high-risk aversion.”
“The firm US dollar, which is likewise being seen as a safe haven, is presumably precluding any steeper upswing in the gold price.”
