Gold pushes over $2000 in overnight trading
Norman says $2000 will be little more than ‘a speed bump’ in this environment

(USAGOLD – 3/7/2022) – Gold pushed briefly over the $2000 mark overnight as Russia’s Finance Ministry gave notice that all external debts would be paid in rubles and the Biden administration hinted at an import ban of Russian oil. It then encountered some profit-taking and is now trading at $1986 – up $14 on the day. Similarly, silver went over the $26 level briefly before falling back to $25.82 – up 6¢ on the day. Contributing to the upside in precious metals, oil pushed through $120 per barrel, and copper challenged $5 per pound.

“The severity of the war in Ukraine and the uncertainty around its future trajectory have fueled broad-based gold buying from safe-haven seekers, pushing prices towards $2,000 per ounce,” writes Julius Baer’s Carsten Menke in a client note cited by Reuters overnight. “A further escalation would likely lift prices further. The latter would likely have a more lasting impact, as it could push the world economy towards a stagflation scenario, which we see as very bullish for gold.” In that same report, Ross Norman – the London-based analyst – said he expected the $2000 barrier to represent “little more than a speed bump” in this environment.

Chart courtesy of TradingEconomics.com