Gold prices rally to best finish in 17 months after briefly crossing $2,000
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Gold futures closed Monday to finish at their highest price since mid-August 2020, lifted by safe-haven trade in reaction to the myriad of uncertainties caused by the Russia-Ukraine war, with April Comex gold (XAUUSD:CUR) settling +1.5% at $1,995.90/oz, the highest finish for a most-active contract since August 2020, after trading as high as $2,007.50.
May silver (XAGUSD:CUR), however, closed -0.3% at $25.72/oz, after trading as high as $26.37 for the highest intraday price since last July.
ETFs: GLD, GDX, IAU, NUGT, PHYS, SLV, SIL, SIVR, PSLV
Gold miners post broad gains, including GORO +10.5%, AGI +4.8%, NEM +4.4%, AEM +4%, FNV +3.6%, HMY +3.4%, AUY +3%, GOLD +2.7%, AU +2.7%, GFI +2.4%.
While gold bulls "will be disappointed that with epic events it has achieved only a 10% gain year to date," the $2,000/oz level should be "little more than a speed bump all things considered - and true to form, the market failed to hold above that key level... on news of a potential peace deal in the Ukraine," Metals Daily's Ross Norman told MarketWatch.
"Gold will likely find some heavy traffic around the $2,000 level initially, but once it is cleared, assuming no change in the Ukraine situation, it will quickly move to the $2,100 region and on to new all-time highs," according to OANDA's Jeffrey Halley.
But Kinesis Money's Rupert Rowling has said that upcoming interest rate hikes are "putting a ceiling on gold, with its lack of yield making it less attractive in a climate of rising interest rates."