Gold price has risen to $2,000 for the first time since August 2020 as the new week of trading gets underway. Safe-haven assets are set to continue to find demand amid Russia-Ukraine jitters, economists at Commerzbank report.

Seeking refuge in gold

“The situation in Ukraine is escalating ever further: Russian President Putin said at the weekend that the economic sanctions imposed by the West were tantamount to a declaration of war. Given this backdrop, investors are likely to continue to seek refuge in the safe haven that is gold.”

“Only marginal attention was paid to the fact that the US labour market is still very robust, as reported on Friday, and that many new jobs were created in February. As the labour market is becoming increasingly tight, which is driving up the inflation risks, the US Fed will presumably raise interest rates next week. In our opinion, a rate hike of 25 basis points should no longer come as any surprise.”