Brent crude hits USD 100 on Ukraine invasion
A Russian invasion is seemingly underway, with reports circulating that Russia has declared war on the Ukraine if the Ukranian Ambassador to the UN’s remarks is to be believed. Brent crude prices spiked higher, touching USD 100 a barrel before retreating slightly. Brent crude is 2.45% higher at USD 99.50, and WTI is 2.85% higher at USD 94.85 a barrel.
Overall, the price action is quite orderly, suggesting the market was positioned for this event. However, I believe this will not remain the case, particularly once the scale of the sanction response from the US and Europe, and the situation on the ground in the Ukraine become clear. A move above USD 100 appears inevitable, and I believe a move by Brent to USD 120.00 is not out of the question, as per my previous comments ad nauseum. There is not much more to say other than that oil remains bid on any sort of dip.
Gold rises as Russia attacks Ukraine
Gold prices rose overnight on Ukraine nerves and have rallied by 1.0% to USD 1928.00 an ounce in Asia as Russian operations were launched. Gold has taken out resistance at USD 1920.00 and can now target USD 1960.00 and USD 2000.00 an ounce. Gold is coming back into its own as a haven asset and I do not rule out new all-time highs in prices in the weeks ahead.
Silver’s major upside breakout is now well underway and should target USD 31.5000 an ounce in the week ahead.
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