Gold Crosses $2,000 Per Ounce, Commodities Soar As Russia Continues To Cause Market Uncertainty
Futures have gone on a wild ride this evening, with a basket of commodities hitting new fifty two week highs after markets were opened following the weekend. The strong momentum follows a weekend where Russia continued to hit Ukraine, while the nation has signaled it has no intentions of stopping until its demands are met. Further, it has begun to be suggested that the sanctions on Russia may cause major problems for the long term value of the US Dollar as the reserve currency.
Gold was one of the big winners this evening, climbing as high as $2,001 an ounce, hitting a new 52 week high, while nearing its all time high of $2,075. At the time of writing, the commodity has given back some of the gains, currently sitting up $24.45 at $1,995.22 an ounce.
Oil meanwhile has also climbed sharply, hitting a high of $127.54, a level not seen since August of 2008. The move comes as Russia, the worlds largest exporter of crude oil, is expected to be banned from the US market based on comments today from Secretary of State Antony Blinken. The United States current imports up to 9% of its oil from Russia, despite itself being the largest producer of black gold.
US oil is currently up $9.10 per barrel, sitting at $124.04 per barrel as of the time of writing.
Palladium too is experiencing heavy volatility, with the precious metal currently up over 5%, after hitting a high of $3,156.26. The metal, critical for electric vehicles and catalytic converters among other items, sees the majority of its production come from Russia, whom of course is now subjected to significant sanctions as the West looks to do what it can to discourage the ongoing war. Russia accounted for approximately 40.9% of global production in 2019.
Copper has also seen bulls come rushing into it this evening, although to a much lesser extent. The metal, also critical for electric vehicles, hit a new 52 week high this evening, climbing as high as $5.03 per pound. It however is up only 1.52%, which pales in comparison to the volatility seen within other commodities.
Bitcoin and cryptobulls alike meanwhile are not having a good time considering the fun being enjoyed by physical asset bulls, with bitcoin currently trading at $38.098.68, down just under 1% on the day. The digital currency hit a low of $37,908.11 while commodities were getting heated.
Information for this briefing was found via TradingView. The author has no securities or affiliations related to this organization. Views expressed within are solely that of the author. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
