By Barani Krishnan
Investing.com - The last time gold got above $1,860 was three months ago, and the last time it rose 2% in a day was six months ago — long enough for longs in the market to forget.
But that’s what happened in Friday’s session amid U.S.-fed fears of an imminent Russia-Ukraine war and that, too, after the close of the Comex session that unofficially put the market up 3% for the week.
Gold’s most active contract on New York’s Comex, April, settled up $4.70, or 0.3%, at $1,842.10 an ounce.
That was before the PBS reported that the United States believed that Russian leader Vladimir Putin has decided to invade Ukraine and has communicated those plans to the Russian military.
U.S. National Security Adviser Jake Sullivan later told a White House media briefing that a Russian attack on Ukraine could indeed happen by next week and would likely begin with an air assault. Sullivan, however, added that the White House did not claim that Putin has made a final decision on the matter.
Sullivan's walk back on so-called Russian intent on the invasion did not register, of course, on markets that went berserk on the first flashes about the imminent threat of war. The S&P 500 tumbled almost 3% at one point, Brent oil hit $95 a barrel and gold reached $1,867.25 — which will officially be the high for Monday’s session.
For longs in the market, gold’s ability to sustain above the key $1,800 has been a boon despite repeated fears of excessive U.S. rate hikes this year to deal with soaring inflation.
So, the golden question: Will it get to $1,900 next and by next week?
Geopolitics could now answer that, more than gold’s charts.