As Russia Crisis Intensifies, Gold Gets Its Groove Back — forbes.com

Gold bugs can thank Russia for the recent run up in prices.  Every time the Russia-Ukraine crisis looks unstoppable, gold gets its groove back. State Street’s SPDR Gold (GLD) exchange traded fund is up over 9% year to date, while the S&P 500 is in negative territory. At $1290 an ounce, gold futures are now about $90 higher than where they were at the close of the year. The uptick is likely due to a weakening global economic outlook, primarily the E.U. and China. Safe havens are back in vogue. The U.S. 10-year Treasury bond yield is now under 1.8%. But the second reason for gold’s shine is the Ukraine variable. Russia and its ex-Soviet bread basket state are locking horns in a territorial dispute pitting pro-Russia separatists in the eastern border provinces against the national government’s military. Kiev is trying desperately not to lose any more precious real estate to the Russians.

Read More