Gold prices set to hit $2,000 an ounce if Russia-Ukraine crisis escalates further: Analysts

Gold prices set to hit $2,000 an ounce if Russia-Ukraine crisis escalates further: Analysts

Gold prices are expected to trade higher this week if the Russia-Ukraine crisis escalates further, analysts told Zawya.

The precious metal continued to climb on Monday, trading at 1,911.47 an ounce as of 9:02 am, Dubai time. The price is up nearly 6 percent compared to a month ago.

Gold prices increased by more than two percent on Thursday after Russia launched a full-scale invasion of Ukraine. The metal is poised to register its highest monthly gain in February since July last year, with the bulls having their eyes set on the $2,000 level.

“Risk appetite sours amid the geopolitical fears and drowns the US 10-year treasury yields and the stock futures,” said Mohammed Shaheen, CEO of UAE-based Seven Capitals, a share market brokerage firm.

“Gold’s traditional safe-haven appeal can keep directing gold towards further north until the conditions settle. Looking forward to settling down the tensions between Ukraine and Russia, the gold might hit a low again.”

Other factors

Besides the rising tensions in Eastern Europe, other factors affecting gold prices are the inflationary concerns coupled with a pullback in 10-year treasury yields and increasing ETF inflows, according to Arun Leslie John, chief market analyst at Century Financial.

John said prices could hit as much as