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Highlights
- Prices of gold, silver, and platinum have jumped at least 8% in the last one month.
- The significant rise in demand for precious metals is supported by safe-haven buying.
- Western sanctions on Russia are hitting the country’s commodity interests hard and putting upward pressure on prices.
Precious metals have recorded impressive gains in recent times. Within the last one month, prices of precious metals including gold, silver, and platinum have jumped more than 8% as geopolitical and economic uncertainties stemming from the Russia-Ukraine war pushed the demand for safe-haven assets.
Source: Eikon EODHD/Others
Gold surpassed the US$2,000 per ounce milestone on Monday for the first time since August 2020, extending its rally to an 18-month high level as geopolitical tensions between Russia and Western allies escalated after Ukraine's invasion. Gold has recorded an unprecedented demand and its prices have zoomed more than 8.9% in the last one month.
Spot Silver was exchanging hands near US$25.90 per ounce in the second week of March, the level last seen in July 2021. The response of Western nations to impose sanctions on Russia drove investors towards safe-haven instruments.
Source: © Baloncici | Megapixl.com
Furthermore, platinum also jumped to a level last seen in July 2021. Supply constraints ignited by the escalated tussle between Russia and Ukraine have driven the platinum market. On top of that, Western sanctions are hurting Russia’s commodity interests and putting upward pressure on prices. Russia's Nornickel is one of the leading suppliers of platinum globally. The expanding sanctions could mean that Russian firms may find it difficult to sell their products in the international market.
The significant rise in demand for precious metals is supported by safe-haven buying amid increasing tensions between both nations and fresh sanctions on Russia by Western allies, which include the US and Europe. At the same time, rising crude oil and commodity prices have also increased inflation worries.
Ongoing tensions between both nations continued to weigh on sentiment as fighting intensified over the weekend, and Vladimir Putin, the Russian President, promised to press ahead with his invasion unless Ukraine surrendered. Investors across the globe have taken positions in safe assets and positioned themselves out of equities boosting the demand for these precious metals.
Against this backdrop, let’s track the performance of all three precious metals.
Data Source: Eikon EODHD/Others
Why should you explore these ASX Precious Metal Stocks amid gloom of war?
Bottom Line
Prices of precious metals, including gold, silver, and platinum, have gained significantly in the last one month as geopolitical and economic uncertainties pushed investors to position themselves out of equities and move to safe assets.
