Gold rises to reach new all-time high above $2,070 an ounce

The price of Gold has soared to an all-time high of $2,078.80, raising its estimated market capitalization above the $13 trillion dollar mark for the first time ever.

This rise has been attributed to investors scramble to protect their assets against inflation caused by the ongoing Russian-Ukraine war.

Gold is presently trading at $2,055.70 an ounce, up by 0.55%. In the Asian session, it traded a high of $2,069.89 an ounce, not far from the newly established all-time high.

Margaret Yang, DailyFX strategist told Reuters that, “there seems to be a lack of further escalation in the tensions between Russia and Western powers. Geopolitical catalysts are the main drivers behind gold, and once the political skies are clear, I foresee gold prices plunging quickly back to the $1,800 levels.”

Other precious metals have also been bullish since the start of the war, as investors try to hold on to as much as they can, as a hedge against inflation.

Palladium is currently trading $3,212.47 per ounce, up by 2.01%. Since the Russian invasion of Ukraine just two weeks ago, the metal has gained over 38% to reach an all-time high of 3,417.02 an ounce on Monday.

Russia is a major global producer of Palladium, accounting for over 40% of global exports.

Edward Meir, ED&F Man Capital Markets analyst told Reuters that Palladium “could move much higher because out of all the commodities, it has the highest percentage share coming out of Russia. Just this week, it took out last year’s high. So, if it’s last year’s high pre-invasion, this tells me that we should be much higher post-invasion.”

On the current price of Gold Ed Moya, analyst at online trading platform OANDA said, “In just a few months, the world went from hating gold as expectations for a robust global economic recovery dented demand for safe-havens, to now becoming worried about stagflation and recession risks.

“Gold should continue to do well as intensifying sanctions from the West will continue to drive persistent volatility across commodities which will keep pushing inflation expectations to uncomfortable levels for central bankers.”