Gold futures were surging on Thursday, rising to their highest intraday levels since September 2020, as Russia launched an invasion of Ukraine, igniting a flight to perceived havens as investors fret that the latest geopolitical actions will destabilize economies and intensify inflationary pressures.
“Markets are in full risk-off mode,” and gold has broken out of a one-and-a-half year-long “bullish consolidation” and tested key resistance of $1,965 early Thursday, said Paul Wong, market strategist at Sprott.
was up $14.80, or 0.8%, at $1,925.20 an ounce, after touching a high of $1,976.50 — the highest for a most-active contract since September 2020, FactSet data show.
“We continue to see gold as an under-owned safe-haven asset,” said Wong. “There was a significant reduction in investment in gold last year which is now in the process of reversing.”
The surge in gold values came even as the dollar was up 1.4%, as measured by the ICE U.S. Dollar Index
A richer dollar would ordinarily serve as a headwind for dollar-pegged commodities such as gold but a retreat in yields for government debt also was helping to counter currency moves. The 10-year Treasury note
yields 1.93%, down 4 basis points, compared with Wednesday afternoon. Rates fall as prices for government debt rise.
In other Comex dealings, palladium was a standout given the risk to supplies from Russia, which is the metal’s largest producer. March palladium
rose 7% to $2,612.50 an ounce. April platinum
however, edged down by 0.9% to $1,082.50 an ounce.