World War 3 Breaks In Days, Gold Prices Fly!

World War 3 Breaks In Days, Gold Prices Fly!

global.gerbangindonesia.org – World War 3 Breaks In Days, Gold Prices Fly!

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The United States said Friday that Russia could launch an attack on Ukraine in a matter of days. As a result of financial market volatility, the demand for safe assets (safe have) such as gold also increases, and the price is flying!

Launching data from Investing, the world gold price yesterday shot up 1.75% to US$ 1,858/troy ounce and reached its highest level since November 18th. In a week, the precious metal skyrocketed more than 2.8%.

Yesterday, Jake Sullivan, the White House’s national security adviser, said Russia was likely to attack Ukraine in a matter of days. He also advised Americans residing in Ukraine to leave the country.

“Americans residing in Ukraine must leave the country immediately, under all circumstances, within the next 24 to 48 hours,” Sullivan said.

He also said there were various possibilities of a military strike that Russia would carry out, and that it might start from an air strike.

“I can’t predict with certainty what kind of military attack will be carried out. As I mentioned earlier, the possibilities of an attack are limited, or it could be more expansive, but will most likely involve the seizure of some territory in Ukraine, major cities, including the capital. city,” added Sullivan.

Edward Moya, senior market analyst at OANDA, said that if a military attack is carried out, the price of gold has a chance to return to US $ 1,900/troy ounce.

“The price of gold shot up after the United States believed President Vladimir Putin would invade Ukraine and had already told the Russian military. If a military attack occurs, the price of gold will shoot up to US$ 1,900/troy ounce,” said Moya.

Prior to last Friday’s jump, world gold prices had continued to climb, because inflation in the United States continued to rise. Gold has traditionally been considered a hedge against inflation, so its demand has increased.

The US Department of Labor last Thursday reported inflation based on the Consumer Price Index (CPI) grew 7.5% year-on-year (yoy) in January, higher than the previous month’s 7% (yoy) as well as Reuters expectations of 7.3%. (yoy). The inflation was the highest since February 1982.

The high inflation has made the US central bank (The Fed) to be aggressive in raising interest rates this year. This has hampered the rate of strengthening of world gold.

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