Gold futures rose to a 24-week high as escalating tension between Russia and Ukraine over control of Crimea spurred demand for the precious metal as a haven. Ukraine warned Russia is amassing troops near its border in the gravest crisis between Russia and the West since the Cold War. Germany told Russia Tuesday it must switch course in Crimea by next week or risk more sanctions, while Ukraine’s deposed Russian-backed president warned of a possible civil war.
How is this affecting the price of gold? “People are being more risk averse and moving to safe- haven assets,” David Meger, the director of metal trading at Vision Financial Markets in Chicago, said. “Gold will continue to move higher if the sanctions are imposed.”
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Gold could climb to above $1,400 if unrest continues, says Director of Global Trading for Kitco Metals Peter Hug. “Most of the gold movement is directly related to the Ukraine. It’s a flight to safety investment mostly coming out of the European market,” said Hug.
Watch the full interview at kitco.com to hear more on what Hug has to say about silver, as well as the PGM’s.
