World gold prices touched the highest level in nine months in trading on Tuesday, before finally rising trend that stops the time of closing a trade. It is because market participants took profits when the price of gold has gone up high, while waiting for the further development of the geopolitical conditions of Ukraine and Russia. The price of gold in the spot market was observed to reach the level of 1.913,89 US dollars per troy ounce, the highest since June 1, 2020.
However, the value of it shrink back to be close to 1,900 U.S. dollars per troy ounce. Also read: Harga Emas Antam Today Down Rp 3.000, Check out the Price Details of Information Reported by CNBC, Wednesday (23/2/2022), the price of gold in the spot market closed down 0.2 percent to its 1902,71 U.S. dollars per troy ounce. However, the u.s. Comex gold futures contract for April 2022 rose 0.4 percent to $ 1.907 US dollars per troy ounce.
United States (US) and its allies, Europe, known to be announced new sanctions against Russia after President Vladimir Putin acknowledged the independence of the two in the breakaway region of eastern Ukraine. A decree signed by Putin made the territory of Luhansk and Donetsk proclaimed himself as the People's Republic of Donetsk and the People's Republic of Lugansk.
In fact, Russia is preparing to send a number of its military forces to the region. Read also: Putin Admit the Independence of Eastern Ukraine, the World Gold Price Instantly Rose to 1,900 U.S. Dollar “is Not surprising to see gold got good support in the current conditions, given as this is the safe-haven assets to work," said Director of Metals Trading at High Ridge Futures, David Meger.
However, the movement of the price of gold is still overshadowed the planned increase in interest rates by the Central Bank of the United States or of the Federal Reserve (The Fed) in March 2022. Gold is considered a hedge against inflation and political risk. However, higher interest rates, The Fed tends to dim the appeal of gold, which doesn't pay interest or the yield on such other investment instruments.