Gold Surges to 15-Month High as Attack on Ukraine Boosts Havens

Gold surged to the highest since 2020 after Russian forces attacked targets across Ukraine, triggering the worst security crisis in Europe since World War II and crushing risk sentiment.

President Vladimir Putin vowed to “demilitarize” Ukraine and replace its leaders, while the West threatened additional sanctions in response. U.S. President Joe Biden announced he would impose “further consequences” on Russia after what he called an “unprovoked and unjustified attack.”

The move sparked a flight to haven assets, with European stocks and U.S. futures dropping while Treasuries rallied. Gold jumped the most in almost two years, even as the dollar strengthened. Bullion priced in euros hit an all-time high.

“The Russian invasion of Ukraine puts the markets in panic mode,” said Alexander Zumpfe, senior trader at refiner Heraeus Metals Germany GmbH & Co. “Investors are throwing shares out of their portfolios and fleeing to safe havens.”