Gold price jumps after Russian attack on Ukraine
The Russian attack on Ukraine caused the price of gold to jump Thursday morning. The price of an ounce of yellow metal, considered a safe haven, was trading up 9.6% over one year to 1,941.52 dollars, its highest since the start of 2021. Russian President Vladimir Putin on Thursday announced the start of a ‘military operation’ in Ukraine where powerful explosions and air-raid sirens sounded in several cities, with Kiev saying a ‘full-scale invasion’ was underway .
EUROPEAN STOCK MARKETS PLUNGE AFTER RUSSIAN OFFENSIVE.
European stock markets tumble at the start of Thursday’s session and oil climbs after Russian President Vladimir Putin’s decision to launch a military operation in Ukraine.
A series of explosions were heard in several cities in Ukraine, including the capital Kiev, following the special military operation launched by Vladimir Putin in the Donbass region, in eastern Ukraine.
The Russian army attacked the country from Russia and Belarus with Belarusian support and an assault is also underway from Crimea, annexed by Moscow, an Ukrainian border guards said.
Condemnations from Western countries, US President Joe Biden has promised to take new measures against Russia and European Union leaders will discuss a new set of sanctions at a summit at the end of the day.
WALL STREET CONTINUES TO SLIDE.
Wall Street ended sharply lower on Wednesday, another session in the red as Ukraine declared a state of emergency over fears of a full-scale Russian offensive while Westerners unveiled additional sanctions after Moscow’s announcements concerning the regions of Donbass, in eastern Ukraine.
This latest information has fueled the concerns of investors, already preoccupied by the prospect of a greater than expected tightening of monetary policy by the US Federal Reserve (Fed) to fight inflation.
The Dow Jones flirted with the correction zone, while the S&P -500 ended like the day before down more than 10% compared to its closing record of January 3 last.
“It’s panic in the markets,” said Ipek Ozkardeskaya. Returning to the volatility recorded on the financial markets, the Swissquote analyst estimated that currently it “is impossible to bet on a scenario” concerning the evolution of prices.
The Paris Stock Exchange is struggling to maintain the threshold of 6,500 points, the Cac 40 dropping 4%, while on Wall Street, the Dow Jones fell by more than 600 points in the first half hour. The Russian offensive in Ukraine has brought the Parisian index back into the correction zone after a drop of nearly 12% from the January 5 peak. Investors are shedding risky assets in favor of gold, oil and government bonds. Soaring energy prices heighten fears about inflation and the risk of a weakening global economy.