Gold Prices Dive From 8-Month High As Russia-Ukraine Tension Mounts Gold prices went down on Monday as markets remain at a standstill over the Russian-Ukraine crisis. A potential reunion between U.S. President Joe Biden and his Russian counterpart Vladimir Putin...

By Cristian Bustos

This story originally appeared on ValueWalk

hamiltonleen / Pixabay - Valuewalk

Gold prices went down on Monday as markets remain at a standstill over the Russian-Ukraine crisis. A potential reunion between U.S. President Joe Biden and his Russian counterpart Vladimir Putin has done little to snuff out investors' fears.

Q4 2021 hedge fund letters, conferences and more

Gold Prices Fall

As reported by Reuters, spot gold was knocked from a session peak of $1,908.03 —the highest since June 3— to $1,895.06 per ounce by 1544 GMT, marking a drop of 0.2%, while U.S. gold futures also decreased 0.2% to $1,895.70.

"European financial markets tumbled at signs of increased confrontation, after having briefly edged higher on a glimmer of hope that a summit might offer a path out of Europe's biggest military crisis in decades."

Craig Erlam, senior market analyst at OANDA, said that the Ukraine situation is central to gold's lower price as investors are losing their appetite for risk.

"We are seeing some resistance around $1,900 but the way the situation is evolving, that may struggle to hold as the day progresses," he said.

Holding Up

In order to unscramble one of Europe's largest geopolitical crises, a reunion between Joe Biden and Vladimir Putin is on the cards, while the U.S. dollar tumbled, "limiting losses in the greenback-priced bullion."

Independent analyst Ross Norman said, "(Gold price) is holding up well. The last time we moved up to these levels it ended up being a bull trap and the market came off very sharply. We've seen some good flows into the ETFs, which is encouraging."

On Friday, holdings of SPDR Gold Trust —the biggest gold-backed ETF in the world— jumped by 0.5%.

Kinesis Money analysts said, "The next few days will be key in determining whether fears over Ukraine can outweigh the encouraging data on the economic front as well as the likelihood of a series of interest rate hikes this year by central banks."

Wavy Line

Editor's Pick

'Catastrophic': Here's What You Should Know About the Debt Ceiling Crisis — And How a Default Could Impact Your Business
Lock
I Helped Grow 4 Unicorns Over 10 Years That Generated $18 Billion in Online Revenues. Here's What I've Learned.
Lock
Want to Break Bad Habits and Supercharge Your Business? Use This Technique.
Lock
Don't Have Any Clients But Need Customer Testimonials? Follow These 3 Tricks To Boost Your Rep.
Why Are Some Wines More Expensive Than Others? A Top Winemaker Gives a Full-Bodied Explanation.

Related Topics

Leadership

The Real Reason Why The Return to Office Movement is Failing is Revealed in New Study

There is a vivid sign of the disconnect between employees and their workplace, a glaring indication that companies need to revise their scripts to improve their hybrid and remote work policies.

Growing a Business

3 Best SMART Goal Examples and How To Achieve Them

SMART goals create an action plan to help you reach your goals. Read on to learn how to develop and achieve your own SMART goals.

Management

12 Good Reasons to Explain Why You Left a Job During an Interview

Not sure what to say when asked why you left your last job? Check out these reasons so that you have a great answer on your next interview.

Business Process

How to Properly Address an Envelope

Properly addressing an envelope ensures it gets to where it should be. Keep reading for a step-by-step guide on addressing an envelope.

Money & Finance

3 Ways to Create Multiple (Big) Streams of Income

Here are three ways to create multiple streams of income. These strategies require effort and resources but offer significant financial potential.

Growing a Business

3 Best Resignation Letter Examples

Are you ready to quit your job? Continue reading for everything you need to know about writing the perfect resignation letter.