World gold price is still at the top of 8 months, US stocks drop

 World gold price is still at the top of 8 months, US stocks drop

Ukraine tensions helped gold prices continue to revolve around $ 1,900, and at the same time put pressure on Wall Street at the end of the week.

Closing the session on February 18, every ounce of world gold for immediate delivery stood still compared to the previous session, at $1,899. During the US session, the gold price at one point touched $1,902 - an 8-month high established on February 17.

Concerns about Russia-Ukraine tensions pushed prices up for the third week in a row. In total, precious metals added 1.9%.

World gold price movements in the past few days.

World gold price movements in the past few days.

US Secretary of State Antony Blinken has agreed to meet Russian Foreign Minister Sergei Lavrov next week, giving investors some reassurance. Gold price yesterday therefore did not rise high. "The latest developments on the Russia-Ukraine situation are positive, keeping prices in check," said Bob Haberkorn, senior market strategist at RJO Futures. However, this is only a short-term factor and prolonged stress will continue to support gold prices, he said.

On the evening of February 18, an international oil pipeline running through the city of Lugansk, controlled by Ukrainian separatists, exploded overnight, but the cause is unknown. US President Joe Biden also confirmed yesterday that he believes Russian President Vladimir Putin has decided to attack Ukraine and that the offensive could begin "in the coming days".

Besides, "investors are looking to the instrument not only because of Ukraine and volatility in the stock market, but also because of inflationary pressures," said Fawad Razaqzada, an analyst at ThinkMarkets.

G20 financial leaders met on February 18 to discuss how inflation and geopolitical risks threaten the fragile global recovery.

On the US stock market, the DJIA yesterday lost 0.7% to 34,079 points. The S&P 500 fell 0.7% to 4,348 points. Nasdaq Composite fell 1.2% to close at 13,548 points.

All three indexes have lost more than 1% this week. This was also the second consecutive week of losses for Wall Street, as Ukraine tensions made investors falter in risk assets. Edward Moya - analyst at OANDA said that "Wall Street will continue to fluctuate until there is a significant move to reduce tensions".

Intel was the biggest loser in the DJIA, with 5.3%. Oil and gas stocks also fell. Schlumberger fell 2.2%. Devon Energy lost almost 1%.