Faced with a dollar refusing to back down from 20-year highs, the trading goalposts in gold futures could widen from their current $50 an ounce to $70 as investors become increasingly unsure of the yellow metal’s standing as a hedge against political and economic risks.
While gold futures got to the key $2,000 level within two weeks of the Ukraine invasion, reaching a 19-month high of $2,079 by Mar. 8, they stayed in that area for just five days and slipped below $1,900 within three weeks of the peak.
Since then, they have bobbed all over the place, returning to $2,000 on Apr. 18 before slumping to this week’s 4½ month low of under 1,786