Home Industry Economy Gold advances to eight-month high, pushes above $1,900 Gold has made a strong start to the year, surging to the highest since June by Bloomberg February 18, 2022 Gold advanced to an eight-month high above $1,900 an ounce as the prolonged standoff over Ukraine stoked demand for havens. The US ramped up warnings of a possible Russian attack, with President Joe Biden saying a “false-flag” event may be under way. Moscow said no invasion was planned, but given proposed US security assurances were unsatisfactory, Russia might have to resort to “military-technical measures.” Gold has made a strong start to the year, surging to the highest since June, as the possibility of a conflict in Europe buoyed prices. The commodity is set for a third weekly gain even as the US Federal Reserve is preparing to raise rates, which could damp demand for the non-interest bearing precious metal. “Expect gold to remain quite volatile,” said John Feeney, business development manager at Sydney-based bullion dealer Guardian Gold Australia. “We could still see gold add a significant amount on official news of an invasion,” Feeney said, adding that there could be a drop of $50 or more if the situation calmed. Citigroup analysts including Aakash Doshi upgraded their near-term gold forecast to $1,950 from $1,825. Further out, the bank remains bearish, with a target of $1,750 over six to 12 months as “higher real yields and stronger equities can weigh on bullion prices again.” Spot gold rose as much as 0.2 per cent to $1,902.48 an ounce, the highest since June 11, and traded at $1,901.13 at 8.39am in Singapore. The Bloomberg Dollar Spot Index was flat. Silver and palladium were steady, while platinum rose. Tags demand gold Metal Palladium Silver 0 Comments You might also like Gold price drifts higher as inflation remains hot Gold shatters record highs, heads for third straight weekly gain Gold continues record rally after US Fed comments Gold regains its allure with record high prices on safe-haven demand