Home News Russia-Ukraine Crisis: Gold hits 13-month high as demand intensifies

Russia-Ukraine Crisis: Gold hits 13-month high as demand intensifies


Factual Pursuit of Truth for Progress


The ongoing war between Russia and Ukraine has led to soaring of prices for commodities ranging from Aluminum and Wheat to gold. This with global supply risks intensifying.

The price of Aluminum surged to a record, while Nickel rose and Wheat advanced near its highest level in more than 13 years.

Gold, a safe haven in times of international crisis, climbed more than 2% before paring gains.

The U.S. and its allies agreed to penalize Russia’s Central Bank and exclude commercial banks from the SWIFT messaging system that’s used for trillions of dollars’ worth of global transactions.

The tougher restrictions add to uncertainties for commodities, which have been roiled by Russia’s invasion of Ukraine.

Prices for metals and agricultural commodities are surging as investors bet that the latest measures could snarl payments to suppliers, and prompt banks to further curtail financing for purchases of Russian goods.

Russia and Ukraine together account for a quarter of global Wheat exports and a fifth of corn sales.

Russia is also major supplier of other commodities, including aluminum, nickel, palladium, oil and gas.

The price of aluminum rose 5% in London trading to go above $3,500 U.S. a ton for the first time ever. Palladium climbed as much as 7.8%.

Wheat futures in Chicago surged as much as 8.7% to $9.34 per 3/4 of a bushel, while the price of corn climbed 5% and soybeans rose 3.9%. Palm oil in Kuala Lumpur gained 6.4% at one point but remained slightly below a record high.

Gold is heading for its best month since May of last year as the conflict combines with rampant inflation to boost demand.

Gold outperformed other safe haven assets including U.S. Treasuries, the Japanese yen, and the Swiss franc in February with an advance of 6%.

Spot gold prices rose as much 2.2% to $1,930.85 U.S. an ounce, before trading at $1,899.83 U.S. in Asian trading.

UNBELIEVABLE Married woman caught with another man by in-laws
Previous articleBurkina Faso military govt. agrees three-year transition before elections
Next articleKissinger on Ukraine: How the Ukraine crisis ends


Please enter your comment!
Please enter your name here