Gold prices rise amid aggravation of geopolitical situation

Global gold prices rose on February 22 morning due to the aggravation of the geopolitical situation after the Russian Federation recognized the independence of the Luhansk and Donetsk oblasts, Report informs referring to the auction data.

Thus, the price of the April gold futures on the New York Comex stock exchange grew by $10.25, or 0.54%, to $1,910.05 per troy ounce. March silver futures rose 0.83% to $24.192 an ounce.

On February 19, the leaders of the Donetsk and Luhansk 'people's republics' signed decrees on general mobilization, and then turned to Russia with a request to recognize the independence of the republics. On February 21 evening, Russian President Vladimir Putin signed an order recognizing their sovereignty. Investors perceived this step as an increase in geopolitical tensions. Traditionally, the precious metal is considered an asset-safe haven for global risks.

According to Commerzbank analysts, quoted by the Wall Street Journal, the price of gold is likely to be affected by the events related to Russia and Ukraine.

Until the crisis is over, or at least until there are signs of a sustained easing of tensions, gold is expected to remain in demand as a safe-haven asset, the experts added.