Weekly Gold Review: Solid Gains Emerge As War Continues

12 Mar 2022 , 11:23 AM

COMEX Gold futures hit a fresh high above $2000 per ounce amid sustained buying support as the war between Ukraine and Russia continued to pose worries to global risk aversion and equity indices tanked around the globe. Fund buying stayed in place for the metal despite soaring prices. The World Gold Council (WGC) stated in a latest update that global gold ETFs drew net inflows of 35.3t (US$2.1bn, 1.0% of AUM) in February. Positive flows were almost evenly split between North American and European funds, continuing the year-to-date growth in Western markets and considerably outweighing outflows from Asia. Global net inflows were driven by stubbornly high inflation and a surge in geopolitical risk on the back of the Russian invasion of Ukraine, which pushed the gold price to an intra-month high of US$1,936/oz. MCX Gold futures spiked above Rs 55500 per 10 grams before pulling back a bit but remained mostly supported. INR tested an al time low above 77 per US dollar, pushing up local futures even more sharply.

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