Why did gold suddenly rise again in the last 24 hours? Is the war between Russia and Ukraine related? How could Biden allowing Ukraine to strike the Russian depths affect global markets? So, what could Putin’s ratification of the nuclear doctrine change in the big picture? There are many questions surrounding what is happening in the global gold market, and everyone is wondering: Is gold on the way up? Or is this just a temporary movement?
In the last 24 hours, Dahab witnessed a big jump after a period of relative stability. The main reason was the tensions that increased significantly due to the recent escalation in the war between Russia and Ukraine. When Biden gave the green light to Kiev to strike the Russian rear, this was a clear message that the confrontation is not just escalating. This also takes on deeper and more dangerous dimensions.
Global markets sensed the danger, and gold, as usual, is the first safe haven in times of crisis, and investors flee from risky assets such as stocks and transfer their money to gold because it is considered a safe haven against fluctuations.
But let’s look at the picture from another angle. When Putin ratified the recent nuclear treaty, this increased international concerns about the possible use of nuclear weapons. This treaty sends strong signals that Russia is rearranging its cards and preparing for greater steps in the confrontation
Here, the markets could not ignore these signs, because any nuclear escalation means a catastrophe, not only at the level of the countries participating in the conflict, but for the entire global economy.. And of course, in times of disaster, gold becomes the star that everyone runs on.
Also, the dollar itself played a role in what happened with these fears. We saw great pressure on the dollar, which is the currency competing with gold. When the dollar declines, this makes gold cheaper for investors who buy in other currencies, and this increases demand for it and helps raise its price further, and this is exactly what happened.
Ok, does this mean that gold will continue to rise?
The answer is complicated because if the situation between Russia and Ukraine remains in a state of escalation, and with the continuation of nuclear fears, then gold is likely to rise, but if any political development occurs that calms things down a little, we may see a calm in its prices. Everything now is linked to geopolitical developments that are changing rapidly.
In general, gold is not just a metal, it is a compass that reflects the fear or reassurance of the world, and every time tensions increase, the gold rises as if it is screaming: I am safety!
The question that arises now: Will this war continue to push gold higher? Are there any other surprises that can change the equation? What is certain is that what happened in the last 24 hours was an alarm bell for all investors, and the entire world has been waiting more than ever before.
