Gold Glitters After Recent Losses, War Worries Escalate

Published on Apr 29, 2022 16:31

COMEX Gold futures have broken well above $1900 per ounce today as bargain buying continued to pick up in the metal following recent spate of losses. The traders continue to watch global geopolitical scenario nervously as NATO deputy secretary-general Mircea Geoana has reportedly stated that it could be years before the Ukraine war is over. This brings in a whole new dimension to the current state of war that has started a little more than two months ago.

In another critical development, the US President Joe Biden has asked Congress to approve a record $33bn aid package for Ukraine, including more arms. Russia has also confirmed that it launched multiple missile strikes on Ukraine yesterday, including in the capital city Kyiv. These are not very positive updates for stability and Gold is riding high on them. Also, the evidence stemming from the recent Gold Demand Trends from the WGC is keeping the metal well cushioned.

The COMEX Gold futures are currently trading at $1914 per ounce, up 1.22% on the day. This marks an excellent rebound from a two and half month low of $1870 per ounce in last session. Given the current breakout in the metal and plethora of supportive news items, the current rally could extend further. A mild downtick in the US dollar index after breaking above 103 mark is also supporting the metal though there is a possibility of the dollar index assuming its upmove given the state of affairs in Ukraine.