Tensions between Russia and Ukraine prompted increased demand for storage havens on Tuesday as gold futures rose in value and barreled toward the threshold price of $1,400 per troy ounce, according to Bloomberg.
But a détente between Western powers and Russia prompted bullion to reverse earlier gains, according to Reuters. Prior to the de-escalation, tensions neared Cold War levels in the aftermath of the prime minister of Ukraine being ousted last month and Russian troops filing into the Crimea region of the nation. Investors are increasingly demanding the yellowish metal as it drives toward its top quarterly advance in seven years.
"Worries about a possible conflict are very constructive for gold, and we are seeing momentum traders come in," marketing strategist Quincy Krosby with Prudential Financials of Newark, New Jersey told the news source on Tuesday. "The mixed economic numbers out of the U.S. and concerns about slowdown in other parts of the world have boosted demand for a safe-haven asset."
At 9:12 a.m. on Tuesday, gold futures fell 1.29 percent, a $17.37 drop to $1,333.24 per troy ounce.
Russian President Vladimir Putin said military force only will be implemented in Ukraine as a final resort, Reuters reports.
The StoneX Group Inc. group of companies provides financial services worldwide through its subsidiaries, including physical commodities, securities, exchange-traded and over-the-counter derivatives, risk management, global payments and foreign exchange products in accordance with applicable law in the jurisdictions where services are provided. References to over-the-counter (“OTC”) products or swaps are made on behalf of StoneX Markets LLC (“SXM”), a member of the National Futures Association (“NFA”) and provisionally registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a swap dealer. SXM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ (“ECP”) and who have been accepted as customers of SXM. StoneX Financial Inc. (“SFI”) is a member of FINRA/NFA/SIPC and registered with the MSRB. SFI does business as Daniels Trading/Top Third/Futures Online. SFI is registered with the U.S. Securities and Exchange Commission (“SEC”) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Adviser. References to securities trading are made on behalf of the BD Division of SFI and are intended only for an audience of institutional clients as defined by FINRA Rule 4512(c). References to exchange-traded futures and options are made on behalf of the FCM Division of SFI.
Trading swaps and over-the-counter derivatives, exchange-traded derivatives and options and securities involves substantial risk and is not suitable for all investors. The information herein is not a recommendation to trade nor investment research or an offer to buy or sell any derivative or security. It does not take into account your particular investment objectives, financial situation or needs and does not create a binding obligation on any of the StoneX group of companies to enter into any transaction with you. You are advised to perform an independent investigation of any transaction to determine whether any transaction is suitable for you. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc.
© 2022 StoneX Group Inc. All Rights Reserved