Welcome to SurvivalBlog’s Precious Metals Month in Review, where we take a look at “the month that was” in precious metals. Each month, we cover gold’s performance, and the factors that affected gold prices.
What Did Gold Do in February?
Well, so much for all the notes I made this month!
Russia’s invasion of Ukraine was naturally the big news in all markets this month. Gold rose $1,800 at the start of the month, up $100 to over $1,900 by the 17th after the ceasefire in eastern Ukraine between separatists and the government broke down.
Gold prices spiked to a 5-year high of more than $1,970 the day of the Russian invasion, but then fell all the way back below $1,900. Gold spent the rest of the month jumping much higher in Europe, then easing as US traders booked profits or sold short later in the day. This resulted in the $1,900 mark becoming the first price support level.
Factors Affecting Gold This Month
UKRAINE
Worries over a war in Ukraine rapidly overtook inflation as the #1 driver in gold prices in February. Gold prices jumped $35 to more than $1,900 on the 17th, after conflict broke out in the separatist regions in eastern Ukraine. Gold hit a 5-year high of more than $1,970 and silver rose above $25.65 as Russian tanks rolled into Ukraine on the 24th.
The craziest part of the day as far as gold was concerned was that it ended the US trading day back at $1,900. It remained near this level for the rest of the month.
If you’re in Russia, or have your money in a Russian bank in Europe, it’s probably too late to get your fiat money out. Now that Russian banks have been barred from the international SWIFT payments system, they can’t bring in money from out of the country, and they can’t support their bank branches in Europe. This means that the thousands of people waiting in line at ATMs in Russia are probably going to be disappointed. Not that their rubles will buy much anymore.
The European division of Sberbank, Russia’s largest bank, has been hit by a massive bank run as people try to get their money out. This has led to banking authorities restricting cash withdrawals to prevent them from failing. Everyone should have bought bullion!Continue reading“February 2022 in Precious Metals, by Steven Cochran”
