Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold rallied another 0.6% to close above $1,852 on flights to safety as tensions continue to mount over the growing threat of a Russian invasion of Ukraine. It was the metal's highest finish since mid-November.

NATO announced that it was reinforcing security forces in eastern Europe by sending ships and fighter jets and putting troops on standby. With more than 100,000 Russian troops massed on the Ukraine border, the Biden Administration has placed 8,500 US troops on high alert for immediate deployment to the region, if not to Ukraine itself.

Wall Street responded with extreme volatility for a second day. After falling 1,000 points and bouncing back to modest gains yesterday, the Dow tumbled 800 points today before clawing back to a loss of around 65 points or 0.2%. The S&P Lost 1.2% while the Nasdaq shed 2.3%.

Further damping risk appetite, the IMF lowered its global growth forecast from 4.9% to 4.4% this year, largely because of slowdowns in the US and China. Meanwhile, US consumer confidence slipped in January on worries about omicron and inflation. Consumer spending powers 70% of GDP.

Investors are awaiting news from the Fed, which begins its first 2022 meeting on policy today. The central bank is expected to signal how aggressively it will raise interest rate hikes to fight 7% consumer inflation, the highest in 40 years. Rising rates eat into corporate profits by increasing borrowing costs, creating headwinds for stocks.

Oil rallied sharply, with WTI crude adding 2.8% to $85.60 per barrel, as geopolitical turmoil fueled supply concerns. The UAE said that it intercepted two ballistic missiles yesterday targeting its capital, Abu Dhabi, and blamed Iran-backed Houthi rebels. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

Gold's gains came despite an uptick in the dollar, which 0.1% on flights to safety, mostly from the euro. A rising buck makes gold and other commodities more expensive overseas.

The other precious metals were also higher, with silver adding 0.4% while platinum and palladium picked up 0.5% and 2.2%, respectively.

At the Comex close: February gold gained $10.80 to $1,852.50; March silver added a dime, to $23.90; April platinum picked up $5.20 to $1,025.50; and March palladium rose $47.90 to $2,188.90 an ounce.