Gold suddenly bolts higher on war concerns
TD Securities says gold ‘incredibly resilient’ despite ‘explosive price action in rates markets’

(USAGOLD – 3/24/2022) – Gold suddenly bolted higher this morning as safe-haven investors weighed an escalation in the Ukraine conflict and the United States raised concerns before NATO about possible Russian deployment of chemical and nuclear weapons in the conflict. It is up $12 at $1959. Silver is up 17¢ at $25.37. “Amplified” concerns about stagflation are also fueling safe-haven interest, according to one analyst quoted by Reuters this morning.

TD Securities sees gold as benefiting from the current investor interest in safe havens, something we pointed out yesterday in this report. “Market participants are keenly watching US 10-year rates as they approach a trend-channel that has served multi-decade-long resistance,” it says in a report posted yesterday afternoon at FX Street. “In this context, gold prices have remained incredibly resilient despite the explosive price action in rates markets following Chair Powell’s comments. While rates markets are now penciling in higher odds for a 50bp hike in May, gold markets could be reflecting a growing cohort of participants interpreting the Fed’s hiking path as being behind the curve on inflation, as the Fed moves too slowly and cautiously to tame inflation.”