The spot gold price at the start of the week was close to $2075 an ounce, but after traders booked profits the yellow metal fell below $2000 after hitting that new high.
Inflation is at levels not seen in decades and the near-term outlook is bleak.
Commodity market experts believe that the sharp rise in precious metal prices was mainly due to the growing amount of bad news coming from the Russian-Ukrainian conflict. They said the general sentiment for gold prices is still positive and you are likely to find plenty of support at lower levels.
As US President Joe Biden announced his intention to revoke Russia’s “permanent normal trading” status, the gold market saw gains after its early morning losses.
This status could be lost, affecting Russia’s trade capabilities and allowing the West to impose tariffs on a wide variety of Russian goods and businesses.
Spot market gold prices are currently supported at $1970 per ounce, which has held for the past few days. Spot gold has major support at $1920 an ounce. Gold investors should be aware of their levels and keep a tight stop loss when taking positions in the yellow metal. The price of gold should remain sensitive to Russian-Ukrainian news.