As geopolitical tensions escalate, Gold continues to be above $ 1,900 per ounce. Recent daily highs have now coincided with the highs reached in 2011. When gold rose firmly above $ 1,900, the intraday high was trading at $ 1,918.50.
Russia's recent actions to send troops into the Donbas regions of Ukraine have led to an escalation of tension, triggering a chain of events. Over the past two days, the United States has begun to initiate tough sanctions against Russia together with European NATO countries. And today's invasion of Ukraine has raised gold to 1,950 dollars per ounce.
NATO and the United States acted as a united front, initiating a series of sanctions, including against the Russian company building the Nord Stream-2 gas pipeline to Germany.
Crude oil prices have also risen and are trading at their highest level since 2014.
This will certainly affect inflationary pressures, as crude oil and gasoline were the main factors driving up the inflation rate.
The military situation in Ukraine and the increase in geopolitical tensions in general also raise the inflation rate.
From a technical point of view, the resistance remains at about the level of 1,960 dollars. Nevertheless, any strong pullback seems unlikely, given the current inflation concerns and Russia's actions towards Ukraine.
Due to the geopolitical situation, gold and oil are likely to go higher.
