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Gold prices popped higher on Thursday as traders sought safe-haven plays with Russia invading Ukraine.
Spot gold prices popped 2.1% to $1,970 an ounce, hovering around a one-year high. The move in gold comes alongside a major risk-off trade in markets globally as Russia launched an attack on Ukraine.
Dow Jones Industrial Average futures plunged more than 600 points as of 5:45 a.m. ET. Russia’s main stock market tanked about 45% at the open. Markets in Europe were also under considerable pressure, with sentiment hurt further by crude oil breaking through to $104 a barrel.
As for gold, the yellow metal has been a solid performer even before Russia’s invasion as traders have looked for bets against elevated inflation.
Gold prices have gained by about 8.3% since early January. The SPDR Gold Shares ETF is up 4.3% year-to-date, compared to a more than 11% decline for the S&P 500.
Shares of gold producers have shot up in empathy. Barrick Gold shares are up 18% in the last month, while Newmont Mining has shot up 8%.
Jefferies strategy team said today in a new note they were initiating new long positions in gold miners.
“The last 50, 60 years gold has always been a stabilizer in a portfolio. You should have around 5% of your portfolio in some sort of gold package. That really helps you through difficult times,” Barrick Gold CEO Mark Bristow said on Yahoo Finance Live.
Source: Yahoo Finance
