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FX.co ★ Gold hits $2000, oil at $130

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Forex Analysis:::2022-03-07T09:29:09

Gold hits $2000, oil at $130

Gold hits $2000, oil at $130

The tense geopolitical situation in Ukraine is now in its second week, and it is not surprising that people are looking for security wherever they can find it. Now it is the U.S. dollar and gold, which was testing $2,000 per troy ounce today.

About a million Ukrainians fled to Europe, which led to a serious humanitarian crisis. This situation has created serious global economic uncertainty.

Supply disruptions led to the fact that today at the opening of markets the price of WTI reached $130 per barrel. This is the highest level since 2008. Rising energy prices increase inflationary pressure. This environment continues to create significant volatility in stock markets that are hovering in the correction zone.

Gold hits $2000, oil at $130

With fewer and fewer alternatives, investors are turning to gold and precious metals en masse. Analysts keep saying gold prices could hit $2,000 an ounce. Noting that the overall macro picture is set for gold to hit $2,000 an ounce, along with other commodities including oil, palladium, nickel, wheat, and corn.

Gold hits $2000, oil at $130

Also, analysts say that even if commodity surges have a lasting impact on inflation and central banks are forced to raise rates, this does not mean that gold will fail as a safe-haven asset in this geopolitical environment.

Friday's rise in prices looks even more impressive if you look at the economic background. The U.S. Department of Labor reported that the U.S. economy created 678,000 jobs in February. At the same time, the latest report on non-farm payrolls showed that the unemployment rate fell to 3.9%.

One of the key indicators to keep an eye on this week will be the U.S. consumer price index (CPI), which will be released on Thursday.

Thursday will be a key day for the publication of macroeconomic data, these are consumer price indices and U.S. jobless claims. The decision of the ECB on the interest rate will also be taken on Thursday.

Analyst InstaForex
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