Gold Hit its Highest Level in More than A Year; Oil, Bonds, Dollar and Yen also Jumped
Gold is now the safest asset
Russian military vehicles have entered Ukraine through Crimea, according to a video released by the Ukrainian Border Guard.
Earlier this morning, livestream video from the Belarus border crossing showed a column of troops and military vehicles crossing into Ukraine. The video was shot around 6:48 a.m. local time at the crossing between Senkivka, Ukraine, and Veselovka, Belarus.
Today, oil soared to $100 a barrel and bonds jumped after Russian President Vladimir Putin’s decision to conduct a military operation in eastern Ukraine impacted global markets.
Crude surged on possible risks to Russian energy exports, with Brent touching $100 a barrel. Gold hit the highest since early 2021. The dollar and yen jumped, while the euro and the ruble retreated.
Speaking on the reason for sharp upside movement in gold price today; Amit Sajeja, Vice President — Research at Motilal Oswal said, “Gold has breached its $1925 hurdle and now it has surged up to $1950 levels. So, next targets for spot gold price is $1980 and $2000, which might be achieved in short term. This rise in gold price today can be attributed to fresh developments in Ukrain Russia crisis where speculation are high about Russia attacking Ukraine anytime.”
Expecting a sharp rise in inflation if the Ukraine crisis goes down to a more severe level; Anuj Gupta, Vice President at IIFL Securities said, “Crude oil price has hit $100 per barrel and it may further appreciate near 10% hitting around $110 per barrel in global markets. This is expected to fuel global inflation, which has already reached an alarming level.”
As a result of bitcoin holders’ fear following President Putin’s announcement, the price of Bitcoin dropped rapidly to $34,700, and it will continue dropping. Crypto investors now tend to keep USDT in their wallets to wait patiently for the result of each Russia-Ukraine battleground decision.
Before that, many financial experts have predicted that if the current situation continues, Bitcoin price will fall below $30,000. And perhaps in a few days, this prediction will come true.
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