AGE Daily Gold Update

AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.

1/19/2022: Gold surges on stocks, tensions

Source: Bill Musgrave, American Gold Exchange

Austin — Gold surged 1.7% to close above $1,843 as tumbling equities and escalating geopolitical tension fueled demand for safe-haven assets.

With Russia massing forces on the border with the Ukraine, US Secretary of State Andrew Blinken warned today that an invasion could occur "at very short notice." He added that diplomacy will continue, if possible, but Moscow's goals are unclear, and the consequences of an attack would be severe.

This escalation in global tension follows a missile attack on the United Arab Emirates by Yemen's Houthi earlier this week, raising the specter of armed conflict that could disrupt the flow of oil from the Middle East.

Wall Street tumbled, with the Dow and S&P 500 dropping 1%. The Nasdaq lost 1.2%, falling into a technical correction of 10% since its all-time high in November.

Benchmark 10-year Treasury yields pulled back slightly on safe-haven inflows. The dollar edged down 0.2%, making gold less expensive overseas.

Rising oil prices also supported gold. WTI crude rose another 1.9% to a new seven-year high near $87 per barrel oil on supply concerns. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were also higher with silver jumping 3.2% while platinum and palladium rose 5% and 5.5%, respectively.

At the Comex close: February gold gained $30.80 to $1,843.20; March silver climbed 74 cents to $24.23; April platinum added $48.90 to $1,028.40; and March palladium picked up 103.80 to $2,008.40 an ounce.