Gold spikes to nine-month high on Russia, Ukraine

Gold has gained nearly 6% this month vs. the S&P 500's 3% drop

Nervous investors, spooked by a Russian-Ukraine conflict, barreled into gold on Thursday, driving the price to a level not seen since June of 2021: $1,900.70 and upward momentum may continue, aiding the SPDR Gold ETF. 

Ticker Security Last Change Change %
GLD SPDR GOLD SHARES TRUST - EUR ACC 162.11 -2.62 -1.59%

"Gold has key resistance around the $1920 to $1930 zone, but if the [safe] haven bid remains strong, bullish momentum could support a move towards the $1970 level" wrote Edward Moya, senior market analyst at The Americas OANDA.

  (Source: Trading Economics )

With a Russian invasion of Ukraine possible in a matter of days, according to President Biden, investors dumped stocks, sending the Dow Jones Industrial Average down 623 points, the worst session of the year, while the S&P 500 and Nasdaq Composite fell over 2%. 

HOUSING INFLATION PERFECT STORM FOR BUILDERS & BUYERS

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 31037.68 +69.86 +0.23%
SP500 S&P 500 3845.08 +13.69 +0.36%
I:COMP NASDAQ COMPOSITE INDEX 11361.851785 +39.61 +0.35%

Even before Russian President Vladimir Putin rattled world leaders, the yellow metal was benefiting from red hot inflation, which, at the producer level is running at a record 9.7%, while consumer prices are at a 40-year-high up 7.5%. 

Ticker Security Last Change Change %
NEM NEWMONT CORP. 59.45 -0.26 -0.44%
GOLD BARRICK GOLD CORP. 17.20 -0.20 -1.15%

"There is a lot of government data around inflation. Inflation is definitely there, and the way we are dealing with it — we are not dealing with negative interest rates, which is the only way you can stop inflation, all good for gold," said Barrick Gold president and CEO Mark Bristow told FOX Business.  

Barrick earlier this week reported stronger than expected quarterly results and boosted its dividend by 11% along with plans to buyback $1 billion in stock. 

GOLDMAN SACHS SEES 7 RATE HIKES IN 2022

Forthcoming rate hikes by the Federal Reserve, with the first possible in March of 2022, may be followed by as many as six more this year, according to Goldman Sachs and Bank of America. 

That would cool demand for gold if it's enough to quell inflation. 

Gold last hit a record $2,051.50 in August 2020 as the COVID-19 pandemic raged, as tracked by the Dow Jones Market Data Group.