Will Gold Reach A New All-Time High?

Gold surged on Thursday with the news of Russia invading Ukraine and the price came within about 5% of its all-time high of $2,067 per ounce from August, 2020.

Tensions have been rising at the Russian - Ukrainian border for several weeks and the gold price has been rising right along with it, currently up over $106 per ounce in the past 30 days.

The major price action started late Wednesday night after Russia’s President Vladimir Putin announced that the country’s armed forces would carry out a “special military operation” in Ukraine. Gold quickly climbed to over $1,970 per ounce before dropping and ending the day Thursday at $1,906 per ounce.

Why it Happened: Gold prices tend to climb along with overall uncertainties in the market, which is why gold hit its high for the day at about the same time the S&P 500 hit its low. As investors flee from equities, a lot of that money finds its way into metals such as gold, silver and platinum.

What’s Next: A war in Ukraine has the potential to push inflation to even higher levels since Russia is Europe’s largest supplier of coal, gas and oil. This could cause hyperinflation throughout Europe, which won’t take long to affect the U.S. economy.

What happens in the coming days, weeks and months with Russia and Ukraine is just speculation at this point. The best scenario for all involved is to see the conflict end soon, peacefully and without the loss of any more life.

However, if the situation worsens and more nations get involved, it will likely send gold prices soaring again past a new all-time high.

How to Invest in Gold?: Gold is a physical asset so investment options are limited aside from an ETF like SPDR Gold Trust GLD.

Those that would prefer to invest directly in physical gold may prefer an option like Vaulted. The platform allows you to buy and sell physical gold in minutes through its app. The gold is securely stored at the Royal Canadian Mint where you can leave it stored, or have it shipped to you at any time.

Learn more about trading gold with Vaulted