Experts say gold prices will continue to push higher in the coming weeks, with much of the support coming from the precious metal’s demand as a safe haven investment during the Ukraine war. Chantelle Schieven, head of research at Murenbeeld & Co., told Kitco News that gold has built a solid base between $1,900 an ounce and $2,000 an ounce. So, even if the war is resolved, she doesn’t expect the safe haven demand to dry up quickly. She said, “The overall fear in the market is not going away anytime soon, and that will continue to support gold. Gold has established solid support around $1,900 and a strong trend is emerging even if geopolitical tensions start to ease.” In other news, Joni Teves of UBS Investment Bank says there are signs that the relationship between gold and real rates is starting to normalize.
Kitco News/Neils Christensen
Gold will continue to shine as Russia’s war with Ukraine changes the geopolitical, financial market landscapes
Gold investors should not expect the precious metal to give up on $2,000 an ounce without a fight, according to one market analyst.
In a telephone interview with Kitco News, Chantelle Schieven, head of research at Murenbeeld & Co., said that gold has found a new range and that the precious metal is building a solid base between $1,900 an ounce and $2,000 an ounce.
The gold market has benefited from significant safe-haven demand as Russia’s invasion of Ukraine enters its fifth week. Even if the war in Eastern Europe is resolved, Schieven said she doesn’t expect safe-haven demand to dry up completely. She added that the conflict has become a critical pivot point that is changing the global geopolitical landscape and financial markets.
Read the full story, here.
Safe haven flows will continue to be the main driver of gold prices in the long term, says UBS
Joni Teves of UBS Investment Bank says there are signs that the relationship between gold and real rates is starting to normalize.
You can watch the full interview, here.
CNN Business/Lucy Bayly and CNN Business
This recession indicator is flashing a warning sign
The bond market is flashing a warning sign that has correctly predicted almost every recession over the past 60 years: a potential inversion of the US Treasury note yield curve.
An inverted yield curve is often seen as a signal that investors are more nervous about the immediate future than the longer term, spurring interest rates on short-term bonds to move higher than those paid on long-term bonds.
While the curve isn’t inverted yet, it’s getting close. That shouldn’t be particularly surprising, given how Russia’s invasion of Ukraine — and its economic ramifications — continue to weigh heavily on the global economy.
Treasury notes are essentially a loan to the US government and are generally seen as a safe bet for investors since there is little risk the loan won’t be paid back.
You can read the full story, here.