Ever since Russia invaded Ukraine the global financial markets are in turmoil. It has been more than a month since Russia unleash war on Ukraine.
Russia was furious over Ukraine’s intention to join NATO.
Currently, all eyes are fixed on the Russia-Ukraine ceasefire talks. After one month of Russian special military operation in Ukraine it seems they are ready to hold talks but with conditions. Ukraine president Volodymyr Zelenskyy conditioned three demands: a ceasefire, security guarantees, and securing its sovereignty and territorial integrity. Russia is baffled by the various sanctions, which west and its counterparts slapped. The sanctions already having a dramatic effect on its economy.
- Russia’s major banks are shut out of the international SWIFT payment transfer network and the central bank assets were frozen.
- The US barred imports of Russian oil and gas.
- The EU planned to cut gas imports by two-thirds within a year.
However, hopes revived for a possible meeting between Putin and Zelenskyy after recent peace talks in Turkey. In the latest development, the Ukrainian president fears a new Russian attack in the east of the country as Moscow deploys more troops after suffering setbacks near the capital Kyiv.
Currently, the precious metal consolidates near $1,920 after retracing from the all-time highs of $2,070.63. The yellow metal is considered a hedge against inflation and volatility. As Russia initiated the special military operation on February 24, the spot appreciated nearly 10% of the new highs made on March 8.
The peace talk between Russia and Ukraine did not get any positive outcome gold is expected to appreciate to be $2,100 in the short term
WTI hit a lifetime hit in March at $126.34 following the volatility and market uncertainty. However, the black gold retreated from the record highs with a descent of 30% to the recent lows. In the latest development, the U.S Biden administration plan to release around 1 million barrels of oil per day for nearly six months from US reserves. The crude oil could test $90.0 in the short term.
US Dollar Index:
The U.S Dollar Index tested the six-years high in March 2022, hitting 99.42. The rising volume suggested the price could shoot toward the 2017 levels around 102 if the peace talk between Russia and Ukraine came with no agreement.