Gold, Silver, Crude Sent Plummeting Amid China’s Covid-19 Resurgence, Russia-Ukraine War Escalation
Gold, silver, and oil fell sharply on Monday morning, as traders’ demand for commodities soured amid rising Covid-19 cases in China and an escalation of tensions between Russia and Ukraine.
The price of gold was down to almost a 4-week low this morning while silver slumped to the lowest in nearly nine weeks, as a surge in Covid-19 cases in China prompted the country’s government to impose some of the most stringent containment measures yet, subsequently sending concerns mounting over slowing demand for raw commodities. Global markets are also worried about the economic implications of Beijing’s Zero Covid-19 policies, with the Chinese yuan falling to the lowest level relative to the US dollar since the end of 2020.
The Covid-19 resurgence that sent much of Shanghai into lockdown seemed to have intensified over the weekend, with officials now ordering mandatory testing in parts of Beijing, as well as completely closing down certain areas of the capital and Shanghai. The problem is expected to add further strain on already-disrupted global supply chains, and send surging inflationary pressures even higher.
In the meantime, it appears that tensions between Russia and Ukraine continue to mount, with no signs of a de-escalation in conflict. The worsening situation is becoming evident on traders’ appetite for crude oil as well, with WTI down to $95 per barrel on Monday.
Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.