Majors

Why the Price of Gold Topped $1,900 Last Week

MajorsFeb 28, 2022

Why the Price of Gold Topped $1,900 Last Week

It fell quickly following the spike but is still likely to remain high in the coming months, analysts said.

20220228_Misahara-bracelet.jpg
The gold price topped $1,900 per ounce last week just prior to Russia invading Ukraine. Pictured is Misahara’s “Gilded” cuff with 18-karat gold and diamonds ($3,900).
New York—The gold price soared above $1,900 per ounce last week as the conflict between Russia and Ukraine escalated before declining again after the U.S.’s expanded sanctions in the wake of the Russian invasion.

The price of the precious metal already was high, even before political tensions sent it soaring for a short time. 

After ending 2021 with an average price of $1,786.65 per ounce in December, the price of gold averaged $1,816.76 per ounce in January, according to Kitco.

It began a steady rise around the second week of February, climbing from an average of $1,813.55 per ounce on Feb. 7 to $1,893.60 per ounce by Feb. 18.

Last week, as tensions rose between Russia and Ukraine, it climbed even higher, passing the $1,900-per-ounce mark on Tuesday,  averaging $1,900.10 that day and ticking up to an $1,904.70 average on Wednesday.

On Thursday, the gold price was at about $1,955 per ounce when the market opened, but news of Russia’s invasion of Ukraine seemed to have a quick effect—the price dropped steadily throughout the day, Kitco charts show, bottoming out at around $1,880 right around the time President Joe Biden and the U.S. Department of the Treasury announced expanded sanctions against Russia. 

Gold averaged $1,884.80 per ounce on Friday. 

 Related stories will be right here … 

The last time the gold price was above $1,900 was last June, Kitco historic charts show.

“As you might expect, the key reason for the price spike is Russia’s invasion of Ukraine, which has led to a jump in safe-haven demand. Even before this, the gold price was benefiting because of rising inflation and concerns that, after the expected increase of U.S. interest rates in March, the Fed may then not raise rates as much as the market believes they will,” said Philip Newman, managing director at Metals Focus.

Newman added that though the gold price tends to spike during significant geo-political events and then fall after said event continues, in this case, gold should remain “well supported” in the coming months due to “underlying economic issues.”

Along those lines, some analysts are predicting that it’s only a matter of time before the price passes the $2,000-per-ounce threshold once again.

The last time it surpassed that mark was in August 2020, when the gold price reached its highest point in eight years. 

The silver price has also been on the rise; it averaged $23.13 in January, but rose to a high of $25.32 per ounce in February. It closed Friday at an average of $24.21. 

The platinum price has also been on a steady incline, passing the $1,000-per-ounce mark in mid-January. It ended last week at an average of $1,101. 

Palladium, meanwhile, hit a 6-month high after Russia’s invasion, peaking at an average of $2,680 per ounce on Thursday. 

The Latest

Future Fortune sapphire ring
TechnologyMar 28, 2024
Pinterest’s 2024 Wedding Report Is Out

The report shows that couples are searching for vintage and antique rings, gold jewelry, pearls, and colorful pieces.

David Ettinger
IndependentsMar 28, 2024
David Ettinger of Bechdel Jewelers Dies at 69

He’s remembered as a “font of passion,” leaving behind a legacy of dedication to his craft and community.

Jewelers of America logo
IndependentsMar 28, 2024
JA to Host Series of Learning Workshops

The first one will take place next month during the Jewelers of Louisiana’s and Mississippi Jewelers Association’s conventions.

Jewelers of America Fly In Washington, D.C.
Brought to you by
How Jewelers of America Represents Your Business

For over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.

Jaeger-LeCoultre Madison Avenue NYC store
WatchesMar 28, 2024
Peek Inside Jaeger-LeCoultre’s Revamped NYC Flagship

The redesigned boutique features interactive displays and a workshop space for hands-on learning about watchmaking.

Weekly QuizMar 28, 2024
This Week’s Quiz
Test your jewelry news knowledge with this short test.
Take the Quiz
Asian Star’s diamond manufacturing facility in India
SourcingMar 27, 2024
Compliance, Caution, and Concern: The Current Outlook of Indian Diamantaires

There is a willingness to comply with new government-mandated regulations, with an insistence that they should be practical and realistic.

Kira Diam solar plant
Lab-GrownMar 27, 2024
Indian Lab-Grown Diamond Manufacturers Keep Growing

A combination of factors is driving growth in the industry despite the precipitous drop in prices across the board.

BTYB-HoBrothers-updated.png
Brought to you by
The Scalable, Professional, and Effortless Solution for High-Demand Custom Jewelry Retailers

Ho Brothers offers scalable solutions for the future of custom jewelry.

Bharat Ratnam, a Mega Common Facilitation Centre (CFC)
SourcingMar 27, 2024
Reinvigorating SEEPZ, the Epicenter of India’s Studded Jewelry Exports

The zone’s modernization will enhance and increase India’s jewelry manufacturing capabilities while aiding small and mid-sized businesses.

SRK Empire and SRK House
Policies & IssuesMar 27, 2024
SRK Exports’ Journey Toward Net Zero Impact

By the end of this year, SRK’s diamond manufacturing complexes will achieve net zero emissions, one of an impressive array of achievements.

Georgia May Jagger Tommy Hilfiger ad campaign
FinancialsMar 27, 2024
Movado’s Full-Year Sales Sink 11%

The company plans to invest $25 million in marketing initiatives to boost awareness around its namesake and licensed brands.

Hand holding shopping bags
SurveysMar 27, 2024
Consumer Confidence Held Steady in March

Optimism about the current state of the economy was offset by anxiety around inflation and the political environment.

Bernadette Mack
Policies & IssuesMar 27, 2024
Mercury Free Mining Hires Bernadette Mack

The former WJA executive director is MFM’s new managing director.

April Is Diamonds Do Good Month
Policies & IssuesMar 27, 2024
Diamonds Do Good Announces Its April Initiative

DDG encourages retailers to educate customers on the positive impact of purchasing natural diamonds.

National Jeweler columnists Duvall O’Steen and Jen Cullen Williams
ColumnistsMar 26, 2024
Creative Connecting: AI Tools and Tips for Social Media

Jen Cullen Williams and Duvall O’Steen explore how jewelers can save time and money by using AI to analyze engagement and create content.

Interior of Miami Lakes Jewelers
IndependentsMar 26, 2024
Miami Lakes Jewelers to Close After 37 Years

The Florida store’s owner Miguel Gonzalez is retiring.

 International Gemological Institute
GradingMar 26, 2024
IGI Announces Tech for ID’ing Lab-Grown Colored Diamonds

The lab stresses the importance of accurate identification, as the difference in price is “substantial.”

Kendra Scott lab-grown diamond jewelry
CollectionsMar 25, 2024
Kendra Scott Debuts Lab-Grown Diamond Fashion Jewelry

The brand also plans to expand its retail footprint from 138 to 200 stores over the next three years.

Instappraise logo NAJA logo
Events & AwardsMar 25, 2024
NAJA, Instappraise Offering Scholarships for Aspiring Jewelry Appraisers

One is reserved for a NAJA member, the other for a non-member.

Carie Lehrke and Megan Mattice
MajorsMar 25, 2024
Borsheims Announces New VP of HR, Assistant Manager

Longtime employees Carie Lehrke and Megan Mattice have received promotions.

My Next Question graphic vintage jewelry webinar
Recorded WebinarsMar 22, 2024
Watch: How to Buy and Sell Vintage Jewelry

Three guests joined National Jeweler and Jewelers of America to discuss trending time periods, spotting reproductions, and more.

Chris Clipper and Robert Lepere
MajorsMar 22, 2024
David Yurman Announces New CFO, Chief People Officer

Chris Clipper and Robert Lepere join the company with 50 years of combined experience.

Nakard pyrite earrings
CollectionsMar 22, 2024
Piece of the Week: Nakard’s Pyrite Earrings

The trendy, metallic earrings wink at classic spring colors.

Stock image of police cars with their lights on
CrimeMar 21, 2024
Sparks Fly as Burglars Lose Safe on California Freeway

JSA said a man and woman pulled the safe out of an Oakland jewelry store but couldn’t quite get it into their van.

Grizzly Mining rough emeralds
SourcingMar 21, 2024
Grizzly Sells 4,145-Carat Emerald for Over $1M

The miner’s March auction generated $19 million.

Helen McCluskey
MajorsMar 21, 2024
Signet Jewelers Names New Board Chair

Helen McCluskey will succeed H. Todd Stitzer when he meets his 12-year term limit in June.

Julia Roberts wearing a Chopard necklace
CollectionsMar 20, 2024
Julia Roberts Co-Designs New Chopard Jewelry Collection

“Chopard x Julia Roberts” showcases the first gems cut from the 6,000-carat-plus “Insofu Emerald."

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy