Russian Military Activities’ Effects on Marketsadmin 12 February 2022
On Friday afternoon, the gold market surged as the United States warned that Russia might soon initiate military action in Ukraine. According to Jake Sullivan, Joe Biden’s national security assistant, ” all Americans in Ukraine should evacuate this country as soon as possible, within the next 24 to 48 hours.” He stated that it is possible that Russia’s military action might begin during or even before the Olympics. According to Sullivan, the United States is unsure about Vladimir Putin’s official order about war, but they expect it to happen soon.
In reaction to the news, gold prices increased by more than $20, and the April Comex gold futures contract traded at $1,857, with a more than 1% increase on the day. The $1,850 per ounce level was crucial to test and breach. Analysts believe that if this level holds, it will pave the way for more increases.
According to Edward Moya, a senior market analyst, the gold price could reach $1900 in the event of a war. He believes that after multiple reports about President Putin’s decisions to invade Ukraine, the gold price has increased. If military movements actually happen, nothing can stop the gold prices from reaching above the $1900 level.
Stocks and cryptocurrencies
US stock markets continued to plunge on Friday, and Nasdaq, S&P 500, and Dow dropped 2.6%, 1.9%, and 1.5%, respectively. Just like stocks, most of the cryptocurrencies’ values fell. Currently, Bitcoin is trading at $42,225, down about 5% from its previous day’s closing price.
Who is telling the truth?
More than 90,000 Russian soldiers are waiting for Putin’s order, a few steps behind the Ukrainian border, to attack Ukraine. Also, the Russian military has some plans to hold several military exercises in the black sea and near Ukraine. The US and European union believe the war is inevitable. However, Russia stated that US and EU are spreading such rumors to fabricate a reason and add Ukraine to NATO.