Gold prices hit their highest level in a year

Mohammed Abdelkhalik
February 24, 2022
Gold prices

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Gold prices jumped more than 2% during today’s session in the European market, in the second consecutive daily gain, recording its highest level in 13 months, above the important psychological barrier of 1950 dollars an ounce. Especially after Russia launched a military attack on Ukraine in the wake of President Vladimir Putin’s orders to carry out what he described as a special military operation.

Gold prices

Gold prices

Gold rose during spot transactions by 2.3% until 09:50 GMT, to trade around the level of 1954.10 US dollars per ounce, the highest since January 2021, from the opening level of today’s session at 1910.14 dollars, and it reached the lowest price at 1909.83 dollars per ounce.

This broad rise in prices recently is supported by the increasing purchases of the metal, as it is one of the best safe havens in times of war and geopolitical turmoil, as gold has risen by more than 8% since the beginning of this February, surpassing the important psychological barrier of 1950 dollars an ounce, and heading towards a better record. Monthly performance since July 2020, with the impact of the Russian-Ukrainian crisis on the decline in risk appetite in global markets.

The developments of the Russian-Ukrainian crisis

Russian President Vladimir Putin announced in a speech in the capital, Moscow, that the Russian army will launch military action in Ukraine.

Officials told the media that Russian forces launched a large-scale military offensive, firing missiles at several Ukrainian cities and landing their forces on the country’s southern coast.

For his part, US President Joe Biden condemned the military attack launched by Russia and stated that the world will hold Russia accountable for the invasion of Ukraine, which supported investors to transfer liquidity to safe havens, especially precious metals and currencies, the US dollar, the Japanese yen, and the Swiss franc.

It is worth noting that the crisis of Russia and Ukraine entered a new phase this week after the United States and the West announced their readiness to impose significant economic sanctions on Moscow after President Putin officially recognized the independence of two pro-Russian separatist regions in eastern Ukraine, which are the regions of “Donetsk and Luhansk”, which raised fears of an outbreak of A new war in Europe.

Returning to trading in other precious metals, silver rose by about 2.1% to the level of 25.03 US dollars per ounce, and platinum gained 1.0% at 1102.43 dollars, while palladium increased by 1.3%, recording the level of 2514.54 dollars per ounce.

Author Mohammed Abdelkhalik

Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.