Gold price in the world reached the highest level in 3 months

 Gold price in the world reached the highest level in 3 months

Fear of Russia-Ukraine conflict raised the demand to buy gold for shelter yesterday.

Closing the session on February 14, each ounce of world gold for immediate delivery increased by 12.3 USD to 1,871 USD. During the session, the gold price at one point climbed to $1,874, the highest since mid-November.

"We see buying in shelter at the moment, as stocks sell off. Lots of big economic data this week will also be released. Focus will be on inflation," Bob Haberkorn – said senior market strategist at RJO Futures. Tensions between Russia and Ukraine have continuously pulled gold prices up.

Gold price in the world reached the highest level in 3 months

The main indexes on the US stock market continued to fall yesterday on worries around interest rate hikes and the US warning that Russia could attack Ukraine at any time. The DJIA yesterday lost 0.49%. The S&P 500 fell 0.38%.

"We believe that any escalation will cause the Fed to stop raising interest rates by 0.5 percent in March, as this will further exacerbate volatility in financial markets," Commerzbank said. said in the notice.

Gold is favored during periods of inflation, but does not pay a fixed interest rate, so it is very sensitive to fluctuations in US interest rates.

Markets now await data on US Producer Prices (PPI) for January and the minutes of the Fed's January meeting, due out this week.