# Gold jumps, stocks stumble as Ukraine crisis deepens
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-02-17
Category: TRADING
Category URL: https://financedigest.com/category/trading
Meta Title: Gold prices surge on fears of Russia-Ukraine conflict
Meta Description: Get the latest updates on global markets as gold hits an eight-month high amid fears of Russian invasion of Ukraine. Stay informed with Reuters.
URL: https://financedigest.com/gold-jumps-stocks-stumble-as-ukraine-crisis-deepenshtml

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By Herbert Lash

NEW YORK (Reuters) – Gold prices jumped to an eight-month high and safe-haven debt rose on Thursday after U.S. [President Joe Biden said there was every indication Russia planned to attack Ukraine](https://www.financedigest.com/south-korea-has-not-supplied-lethal-weapons-to-ukraine-president-says.html "South Korea has not supplied lethal weapons to Ukraine, president says"), while Moscow accused Washington of ignoring its security demands.

A gauge of global equities fell more than 1% despite strong corporate earnings in [Europe as the standoff over Ukraine deepened](https://www.financedigest.com/europe-burns-cash-to-help-businesses-in-deepening-energy-crisis.html "Europe burns cash to help businesses in deepening energy crisis"). Russian-backed separatists and Ukrainian [forces accused each other of firing shells across a cease-fire line as Britain](https://www.financedigest.com/britain-says-it-is-committed-to-leading-a-nato-task-force-in-2024.html "Britain says it is committed to leading a NATO task force in 2024") said Russia sought to fabricate a pretext to invade.

In a sign of increasing alarm about Ukraine, U.S. Secretary of State Antony Blinken told the UN Security Council this is “a moment of peril” for the [lives and safety of millions](https://www.financedigest.com/collegiate-ac-and-shuman-capital-launch-e300-million-european-student-living-fund.html "Collegiate AC and Shuman Capital launch €300 million European Student Living Fund") of people regarding Russia’s potential invasion of Ukraine. [Russia denies planning to invade](https://www.financedigest.com/dollar-surges-as-russia-invades-ukraine.html "Dollar surges as Russia invades Ukraine") its neighbour.

U.S. and German government [bond yields](https://www.financedigest.com/wall-st-stocks-fall-bond-yields-rise-as-china-drops-quarantine-rule.html "Wall St stocks fall, bond yields rise as China drops quarantine rule") fell, and oil slid as talks entered their final stages to resurrect a 2015 nuclear deal that would allow Iran to resume oil exports to clients such as South Korea. Losses were capped by the [growing tension between major energy](https://www.financedigest.com/factbox-europe-ramps-up-coal-imports-as-energy-supply-fears-grow.html "Factbox-Europe ramps up coal imports as energy supply fears grow") exporter Russia and the West.

Investors already were looking toward the long weekend with Monday a U.S. holiday when markets will be closed, said Marc Chandler, [chief market strategist at Bannockburn Global](https://www.financedigest.com/global-economic-crisis-strangling-progress-for-poor-warns-u-n-development-chief.html "Global economic crisis strangling progress for poor, warns U.N. development chief") Forex.

You as a [market participant are not incentivized to be fighting the risk-off mood ahead](https://www.financedigest.com/dollar-soars-to-two-decade-high-as-putin-shakes-fx-market-ahead-of-fed.html "Dollar soars to two-decade high as Putin shakes FX market ahead of Fed") of the weekend when anything can happen,” Chandler said.

The pan-European STOXX 600 index fell 0.74% while MSCI’s gauge of stocks [across the globe](https://www.financedigest.com/germany-u-s-agree-to-new-covid-curbs-as-omicron-spreads-across-globe.html "Germany, U.S. agree to new COVID curbs as Omicron spreads across globe") shed 0.85%.

On [Wall Street](https://www.financedigest.com/asian-stocks-edge-up-before-u-s-jobs-data-defying-wall-street-selloff.html "Asian stocks edge up before U.S. jobs data, defying Wall Street selloff"), the Dow Jones Industrial Average fell 1.19%, the S&P 500 lost 1.18% and the Nasdaq Composite dropped 1.47%.

Asia MSCI’s broadest index of Asia-Pacific [shares eked out a 0.15% rise](https://www.financedigest.com/u-s-mid-tier-lenders-shares-rise-in-frankfurt-after-svb-deal.html "U.S. mid-tier lenders shares rise in Frankfurt after SVB deal").

Worries about a super-hawkish Federal Reserve rate-tightening campaign [eased overnight after minutes of its latest policy meeting signaled a measured](https://www.financedigest.com/factbox-government-measures-to-ease-inflation-pain-2.html "Factbox-Government measures to ease inflation pain"), even dovish stance.

[Ukraine concerns led investors to buy government debt](https://www.financedigest.com/ukraine-seeks-debt-payment-freeze-as-war-ravages-economy.html "Ukraine seeks debt payment freeze as war ravages economy"). Yields on the U.S. 10-year Treasury note dropped 8.2 basis points to 1.963%, while yields on [Germany’s 10-year government bond slid 0.2 basis points](https://www.financedigest.com/germany-added-35-more-electric-car-charge-points-in-2022-says-bdew.html "Germany added 35% more electric car charge points in 2022, says BDEW") to 0.229%.

The Russia-Ukraine [crisis has unnerved investors who also must monitor the Fed and efforts by other central banks](https://www.financedigest.com/how-the-2023-banking-crisis-unfolded.html "How the 2023 banking crisis unfolded") to fight soaring global inflation.

There’s a lot of confusion right now and everybody’s [crystal ball](https://www.financedigest.com/2017-spanish-property-market-gems-kyero-com-gazes-into-the-crystal-ball.html "2017 Spanish property market gems – Kyero.com gazes into the crystal ball") is pretty cloudy,” said George Mateyo, chief investment officer at Key Private Bank, speaking of both of Ukraine and how the Fed might tighten monetary policy.

The U.S. economy has weathered COVID-19’s hit on the economy well, with GDP and corporate earnings at peak levels, which bodes [well for the market](https://www.financedigest.com/digitized-scintillation-to-drive-the-medical-wellness-market.html "Digitized scintillation to drive the Medical Wellness Market"), he said.

It’s going to be a [challenging year](https://www.financedigest.com/yorkshire-bank-reveals-five-key-challenges-smes-face-year-ahead.html "Yorkshire Bank reveals five key challenges SMEs face in the year ahead"), but not a dire year,” Mateyo said. [“Expect some volatility this year](https://www.financedigest.com/global-automotive-brake-system-market-is-expected-to-witness-a-rise-of-3-cagr-between-the-forecast-years-of-2020-2030.html "Global Automotive Brake System Market is expected to witness a rise of 3% CAGR between the forecast years of 2020-2030"), but don’t abandon risk altogether, don’t get super defensive. There’s a lot of [missed opportunities](https://www.financedigest.com/accountants-risk-missing-post-brexit-opportunities.html "Accountants risk missing post-Brexit opportunities") inside the market.

Spot gold added 1.5% to $1,895.77 an ounce after [rising close](https://www.financedigest.com/global-stocks-close-in-on-4-week-highs-oil-rises-on-hopes-of-soft-landing.html "Global stocks close in on 4-week highs, oil rises on hopes of ‘soft landing’") to the key $1,900 mark.

[Oil prices](https://www.financedigest.com/oil-prices-steady-after-u-s-stockpile-swell.html "Oil prices steady after U.S. stockpile swell") fell more than 2% before easing. U.S. crude futures fell 1.56% to $92.20 per barrel and Brent was at $93.30, down 1.59% on the day.

The dollar, also regarded as a safe haven, initially rose against most currencies but gains subsided and the greenback was later marginally [lower – a sign investors](https://www.financedigest.com/investors-eye-lower-wall-street-on-powell-nerves.html "Investors eye lower Wall Street on Powell nerves") were not yet panicking about the Russia-Ukraine tensions.

However the [Japanese yen](https://www.financedigest.com/japanese-yen-gains-as-ueda-set-to-be-named-next-boj-governor.html "Japanese yen gains as Ueda set to be named next BOJ governor"), a currency investors often buy as a safe-haven, hit its strongest since Feb. 7.

The dollar index fell 0.058% as the [yen](https://www.financedigest.com/dollar-hits-20-yr-high-as-yen-tumbles-on-dovish-bank-of-japan.html "Dollar hits 20-yr high as yen tumbles on dovish Bank of Japan") strengthened 0.42% at 114.98 per dollar.

The euro down 0.06% to $1.1366.

Bitcoin last fell 4.62% to $42,047.23.

(Reporting by Herbert Lash, additional reporting by Tommy Wilkes in London, Kevin Buckland and Selena Li in Tokyo; Editing by Kim Coghill, Kirsten Donovan and Barbara Lewis)


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