Will Putin's Threat to Use Nuclear Weapons in Ukraine War Drive Up Prices of Gold and Silver?

Blog Categories , Insights

Welcome to Jaggards Wednesday Market Insight

22 Feb, 2023

As at 12pm, AEST.

Gold Spot Price $AU2,679.32

Silver Spot Price $AU31.91

Platinum Spot Price $AU1,382.53

Market Sentiment

Google Trends

30-Day Google trend positions for Gold

Twitter sentiment

#Goldprice was tweeted 1281 times. The Average Worldwide Tweet volume looks to be increasing from the 20th February.

Market news highlights

This week, the global community is responding to developments in the Ukraine War. Specifically, Russian leader Vladimir Putin has announced his willingness to use nuclear weapons in response to Western assistance to Ukraine. While this announcement has garnered significant attention, we will focus on how it can affect markets rather than its specifics.

Historically, any news of War, especially when it involves world powers, tends to cause an increase in interest towards safe-haven assets like gold and silver. Such investments are considered opportune during times of economic uncertainty as people seek to safeguard their wealth. This investment strategy, although in modern times more opportunistic, was previously used as a protectionist measure against hyperinflation and to keep wealth readily accessible. During protectionist periods, gold was often held in smaller pieces, making it more convenient for exchanging for everyday goods. Smaller gold pieces also helped guard against theft or loss as they could be hidden or stored in multiple locations.

Considering last week's market insights and the 200MDA charts for gold and silver, Putin's recent news on nuclear weapon use in the Ukraine War may provide an upward momentum in the prices of these precious metals. Thus, with the ongoing economic uncertainty resulting from current events, pricing for both gold and silver continues to remain strong, bolstered by a strong 200MDA baseline.

*Not financial advice, please do your own research prior to any investment decisions you make.

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Gold prices, 30-day period