Gold price climbed for a time to $1,975 on the back of the escalating Russia-Ukraine conflict, putting it at its highest level since September 2020. If the situation worsens, the yellow metal would see renewed upside pressure, strategists at Commerzbank report.

Gold profits from falling bond yields and slump on stock markets

“Gold is in considerable demand as a safe haven in the current environment, as also evidenced by further ETF inflows. In addition, gold has been profiting from falling bond yields and a slump on many stock markets – both of which indicate high-risk aversion among market participants.” 

“We believe it possible that the gold price will see a renewed upswing in the next few days – especially if the situation in Ukraine escalates any further.”

See – Gold Price Forecast: XAU/USD to push higher towards $2,000 protracted escalation in Ukraine – UBS