Gold has climbed to $1,840. Nonetheless, G7 planning import ban on gold from Russia is set to have a  limited market impact, in the view of strategists at Commerzbank.

Inflation pressure to remain high in the short term 

“The seven leading industrialised countries are planning at their summit to ban imports of gold from Russia. This may indeed explain the immediate market reaction. However, the actual impact on the gold market is likely to be too small to have any lasting influence on the price trend.” 

“The development of inflation and interest rates will continue to have a greater bearing on the gold price. The inflation pressure is likely to remain high in the short term. This is positive for gold per se in its role as an inflation hedge. However, it also keeps up the pressure on central banks to raise interest rates more steeply, which is negative for gold per se as a non-interest-bearing investment. Much therefore points to a continuation of volatile sideways trending depending on which of the two influential factors happens to have the upper hand.”