Gold Surges to $1,930 with Russian Invasion of Ukraine 

War brings instability and gold prices thrive in unstable economic conditions. Traditionally, gold has been both a store of value that protect your assets in a high inflationary climate. When economies are stable and stocks are rising, gold generally falls or remains flat. When economies are threatened by uncertainty, most notably by war, inflation and recession, the yellow precious metal tends to shine.

Tonight, Vladmir Putin, the president of Russia, announced a “special Russian military option” in eastern Ukraine—thus, the Russian invasion of Ukraine appears to have begun.

As such, we expect gold prices to continue to rise, especially if the situation escalates over the oncoming weeks. Unless the situation stabilizes, which at this point seems unlikely, at least in the short term, we expect gold to continue striving towards the $2,000 mark in the near term.

However, once, the international situation settles or descalates or some semblance of a “new normal” is established, gold may dip back down to former $1,800+ levels, although we would not be surprised if $1,900+ is the new norm for some time to come. The following morning following Ukraine’s invasion by Russia, gold pulled back just slightly to $1,925 per ounce.

It’s not only war and the threat of war, but all the failures of the current administration, from high inflation, possibility of recession (remember, a technical recession is only two quarters of an economic contraction), rising energy costs and a loss of confidence in our national institutions.

Apples of Gold Jewelry will attempt to keep our prices at current levels as long as possible, with only modest increases in select items that are more gold intensive. Fine jewelry prices are directly related to the market price of gold. As gold goes up, not only does the base price of jewelry increase, but manufacturers also increase their premiums to keep up with changing costs, meaning that labor costs may also increase. There is a real connectivity with the gold price per troy ounce and the wholesale and retail price of gold jewelry.

Category: Gold News, Gold, Stocks, Crypto