Gold futures climbed Sunday, posting a weekly gain of more than 4%. Anxieties grew after the latest Russian assault in Ukraine saw it take over Ukraine’s largest nuclear power facility following shelling that started a fire at the plant.
COMMODITIES HAVE BEST WEEK EVER AS RUSSIA, UKRAINE SPARKS BUYING
April gold climbed 1.6%, to settle at $1,966.60 an ounce. The precious metal saw a weekly rise of 4.2%, which was the largest weekly rise for a most-active contract since July 2020, according to Dow Jones Market Data.
“Gold is clearly elevated and headline sensitive now and [in the] foreseeable weeks,” said Jeff Wright, chief investment officer at Wolfpack Capital. Prices “could quickly accelerate above $2,000 or fall sharply – if there was some substantive settlement” in the Russia-Ukraine conflict, which is becoming less likely by each passing day, he said.
Precious metal prices are likely to find support amid macroeconomic headwinds due to a “deteriorating growth [and] inflation mix in developed markets,” Goldman Sachs says. These are the most important drivers of gold and silver prices, the investment bank says.
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“We therefore see upside risks to our year-end targets of $2,150/toz for gold and $30/toz for silver,” it says. Spot gold rises 0.9% to $1,987.20 an ounce and spot silver gains 0.9% to $25.89 an ounce, Goldman Sachs reported Sunday night.