Spot gold came off yearly highs last seen in June 2021, pushing above the psychological $1900 per ounce mark. After sanctions imposed on Russia by U.S. President Joe Biden, gold is tracking marginally lower this morning after a volatile day yesterday. As long as tensions remain in the Russia/Ukraine region, bullion is likely to remain elevated irrespective of political ping-pong. Gold tends to garner favor from its safe-haven allure while bond yields tend to fall – lowering the opportunity cost of holding the non-interest bearing yellow metal.
